Ethereum dived towards $1,000 before finding support against the US Dollar. ETH is now correcting higher and facing a major hurdle near $1,125.
- Ethereum extended a drop to $1,000 before finding support.
- The price is now trading above $1,080 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,100 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may continue to rise if it clears the resistance area of $1,125.
Ethereum price finds support
Ethereum remained in a bearish zone below the $1,100 support area. ETH declined below the $1,050 and $1,040 levels. However, the bulls appeared above the $1,000 support area.
A low was formed near $1,014 and a fresh increase in the price was started. The bulls gained strength to move higher above the $1,050 and $1,060 resistance levels. Ether price climbed above the 23.6% Fib retracement level of the decline from the $1,275 high to $1,014 low.
Moreover, there was a break above a major bearish trend line with resistance near $1,100 on the hourly chart of ETH/USD. Ether price is now trading above $1,080 and the 100 hourly simple moving average.
An immediate upside resistance is near the $1,125 level. The first major resistance is near the $1,145 area. It is near the 50% Fib retracement level of the downside bias from the $1,275 high to $1,014 low. A clear move above the $1,145 level could propel the price.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,195 level, above which the price started a decent rise. In the specified case, the price is likely to move towards the $1,280 resistance area.
Latest drop in ETH?
If Ethereum fails to rise above the $1,145 resistance, it could start a fresh decline. An initial support on the downside is near the $1,090 area. The next major support is near the $1,080 area.
There could be another downside break below the $1,080 support. In the specified case, the price could decline towards the $1,030 level, below which the bears could gain strength.
technical indicators
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.
Key Support Level – $1,080
Key Resistance Level – $1,145