- Ethereum is facing an increase in selling below the $1,400 level.
- The price is now trading below $1,400 and the 100 hourly simple moving average.
- There is a new connecting bearish trend line forming with resistance near $1,350 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover further if there is a clear move above the $1,400 resistance zone.
Ethereum Price Recovers Slightly
Ethereum formed a base above the $1,300 level and recently started an upside correction. ETH was able to recover above the $1,320 and $1,325 levels.
There was a move above the $1,350 resistance. Ether price climbed above the 38.2% Fib retracement level of the downward move from the $1,475 swing high to $1,282 low. The price even spiked above the $1,375 level, but upsides were limited.
The price failed to gain pace above the 50% Fib retracement level of the downward move from the $1,475 swing high to $1,282 low. It is now trading below $1,400 and the 100 hourly simple moving average.
On the upside, the price is facing resistance near the $1,350 level. There is also a new connecting bearish trend line forming with resistance near $1,350 on the hourly chart of ETH/USD. The next major resistance is near $1,380 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The main resistance sits near the $1,400 level. A clear break above $1,400 might start a decent increase towards the $1,450 level. Any more gains may perhaps open the doors for a move towards the $1,500 resistance.
Fresh Decline in ETH?
If ethereum fails to rise above the $1,350 resistance and the 100 hourly simple moving average, it could start a fresh decline. An initial support on the downside is near the $1,300 zone.
The next major support is near $1,280. A downside break below the $1,280 support might increase selling pressure. In the stated case, ether price might drop towards the $1,200 level in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,300
Major Resistance Level – $1,400