Ethereum started a sharp downside correction below $1,200 against the US Dollar. ETH price is down 20%, but is approaching a crucial support at $1,000 and the 100 hourly simple moving average.
- Ethereum failed to stay above the $1,200 support and declined heavily below $1,150.
- The price is down 20%, and it is approaching the $1,000 support and the 100 hourly simple moving average.
- There was a break below a major ascending channel with support near $1,250 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to find a strong support near the $1,000 zone and the 100 hourly SMA.
Ethereum Price Corrects Sharply
In the past two sessions, there was a strong downside correction in bitcoin and Ethereum below $38,000 and $1,100. ETH price failed to stay above the $1,200 support and declined heavily below $1,150.
There was a strong bearish wave after there was a close below the $1,200 level. More importantly, there was a break below a major ascending channel with support near $1,250 on the hourly chart of ETH/USD.
The pair even broke the 50% Fib retracement level of the key upward move from the $890 swing low to $1,351 high. Ether price is down 20%, and it is approaching the $1,000 support and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The 76.4% Fib retracement level of the key upward move from the $890 swing low to $1,351 high is also near the $1,000 level to act as a strong support. The 100 hourly simple moving average is also near the $1,000 zone to act as a strong support in the near term.
If ether price fails to stay above the $1,000 support and the 100 hourly simple moving average, there a risk of a drop towards the $900 support level in the coming sessions.
Fresh Increase in ETH?
If ethereum stays above the $1,000 support and the 100 hourly simple moving average, it could start a fresh increase. An initial resistance on the upside is near the $1,180 level.
The first key resistance is near the $1,200 level. A close above the $1,200 level may possibly push ether price back into a positive zone. In the stated case, it could revisit the $1,300 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level, with a bearish angle.
Major Support Level – $1,000
Major Resistance Level – $1,200
