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TA: Ethereum Key Indicators Suggest A Sharp Drop Below $1K

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Ethereum declined below the $1,120 support against the US Dollar. ETH is now at a risk of more losses if it stays below the key $1,150 resistance.

  • Ethereum remained in a bearish zone below $1,200 and $1,150 levels.
  • The price is now trading below $1,150 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $1,100 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline further if there is a clear move below the $1,050 support zone.

Ethereum Price Turns Red

Ethereum remained in a bearish zone and extended losses below the $1,150 support zone. ETH failed to stay above the $1,120 support zone and moved further into a bearish zone.

The price even settled below the $1,000 support zone and tested the $1,075 zone. A low is formed near $1,076 and the price is now consolidating losses. It is trading well below $1,150 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,100 level. There is also a key bearish trend line forming with resistance near $1,100 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the downward move from the $1,235 swing high to $1,076 low.

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,150 zone. The 50% Fib retracement level of the downward move from the $1,235 swing high to $1,076 low is also near $1,150. A close above the $1,150 resistance zone could start a steady increase. In the stated case, the price could clear the $1,200 resistance. Any more gains might send the price towards the $1,235 high.

More Losses in ETH?

If ethereum fails to rise above the $1,150 resistance, it could continue to move down. An initial support on the downside is near the $1,075 zone.

The next major support is near the $1,050 zone. A close below the $1,050 level might push ether price further lower. In the stated case, ether price may perhaps decline towards the $1,000 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now well below the 50 level.

Major Support Level – $1,050

Major Resistance Level – $1,150

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  • Source: https://www.newsbtc.com/analysis/eth/ethereum-drop-below-1k/

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