TA: Ethereum Facing Major Hurdles: Why 100 SMA Could Trigger Fresh Rally
Ethereum struggled to clear $1,150 and started a fresh decline against the US Dollar. ETH price is currently trading well below the 100 hourly SMA and $1,100.
- Ethereum is showing a few bearish signs after getting rejected from the $1,150 resistance zone.
- The price is now trading well below $1,100 and the 100 hourly simple moving average.
- There is a key bearish trend line in place with resistance near $1,070 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must settle above $1,120 and the 100 hourly SMA to start a fresh rally.
Ethereum Price Could Decline Again
Yesterday, we saw a decent recovery wave in bitcoin, ethereum, ripple and other altcoins. ETH price broke the $1,080 and $1,100 resistance levels. It even spiked above the $1,120 level.
However, the bears defended a major resistance zone near $1,150 and the 100 hourly simple moving average. A high was formed near $1,152 before the price started a fresh decline. There was a break below the $1,120 and $1,100 support levels.
Ether price even declined below the 50% Fib retracement level of the recovery wave from the $910 swing low to $1,152 high. There is also a key bearish trend line in place with resistance near $1,070 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
If there is no upside break above the trend line resistance and the 100 hourly simple moving average, there is a risk of more losses. An initial support is near the $1,000 level or the 61.8% Fib retracement level of the recovery wave from the $910 swing low to $1,152 high.
The next major support is near the $950 level, below which ether price might continue to move down towards the $900 and $880 levels in the near term.
Fresh Increase in ETH?
If ethereum breaks the trend line resistance and $1,100, it could start a decent increase. The main resistance is still near the $1,150 zone and the 100 hourly simple moving average.
A close above the $1,150 level and the 100 hourly SMA could change the current bias. The next hurdle for the bulls above the $1,150 zone is near the $1,220 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still below the 50 level, with a bearish angle.
Major Support Level – $1,000
Major Resistance Level – $1,150
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow