TA: Ethereum Lacks Momentum Above $1,350, Why ETH Could Correct To $1,180
Ethereum is facing resistance near the $1,350 level against the US Dollar. ETH price could continue to move lower towards $1,200 or $1,180 unless it settles above $1,350.
- Ethereum is struggling to gain momentum above $1,350 and $1,375.
- The price is now trading well below $1,350 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its decline towards the $1,200 support as long as it is below $1,375.
Ethereum Price is Showing Bearish Signs
After testing the $1,250 support zone, Ethereum started a fresh increase. ETH broke the $1,300 and $1,320 resistance levels. It even broke the $1,350 level and the 100 hourly simple moving average.
However, the bulls failed to keep the price above $1,350. A high was formed near $1,375 and the price is currently declining. There was a break below the $1,350 support level. Ether is now trading well below $1,350 and the 100 hourly simple moving average.
It is testing the 50% Fib retracement level of the upward move from the $1,246 low to $1,375 high. It seems like there is a key bearish trend line forming with resistance near $1,360 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
On the downside, an immediate support is near the $1,295 level. It coincides with the 61.8% Fib retracement level of the upward move from the $1,246 low to $1,375 high. The next major support is near the $1,250 level, below which ether could continue to move down towards the $1,200 support zone or even $1,180.
Upside Break in ETH?
If Ethereum stays above the $1,295 support zone, there are chances of an upside break above the 100 hourly simple moving average. The first major resistance is near the trend line and $1,350.
A successful close above the trend line resistance and $1,350 could open the doors for a fresh increase. The next major resistance is near the $1,375 level, above which ether price will most likely climb above towards the $1,450 level. The main hurdle on the upside is still near $1,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
Major Support Level – $1,295
Major Resistance Level – $1,350
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