Ethereum extended its decline and tested the $1,000 support against the US Dollar. ETH is rallying but needs to liquidate $1,280 to start a steady up move.
Ethereum dipped towards the $1,000 level before the bulls appeared. The price is now trading below $1,280 and the 100 hourly simple moving average. There was a break above a major downtrend line with resistance near $1,205 on the hourly chart of ETH/USD (data feed via Kraken). The pair could resume its decline unless it breaks above $1,280 and $1,300 any time soon.
Ethereum price is facing key resistance
Ethereum started a fresh decline below the $1,100 level. The price traded to a new multi-month low and almost tested the $1,000 support zone.
A low was formed near $1,013 before the price started a bullish correction. There was a wave of recovery above the $1,120 and $1,150 levels. Ether price rose above the 23.6% Fibonacci retracement level of the key decline from the $1546 high to $1013 low.
Furthermore, there was a break above a major downtrend line with resistance near $1,205 on the hourly chart of ETH/USD. However, the price is still trading below $1,280 and the 100 hourly simple moving average.
The bears were active near the $1,260 resistance zone. The next major resistance is near the $1,280 zone and the 100 hourly simple moving average. The 50% Fib retracement level of the key drop from the $1,546 high to $1,013 low is also near the $1,280 zone.
Source: ETHUSD on TradingView.com
A clear move above the $1,280 resistance zone can perhaps start a decent move up. The next major resistance is near the $1,420 level. Further gains could start a move towards the $1,550 resistance.
New drop in ETH?
If ethereum fails to break above the $1,280 resistance, a new decline could begin. An initial support on the downside is near the $1,180 zone.
The next big support is near the $1,125 zone. A clear move and a break below the $1,125 zone could initiate a major drop. In the indicated case, the price could slide towards the $1,000 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level: $1,125
Major resistance level: $1,280
This post Ethereum recovers 6%, why 100 SMA is the key to advantages
was published first on https://www.newsbtc.com/analysis/eth/ethereum-recovers-1200/