Key Highlights
- ETH price declined heavily and moved toward the $700 level before recovering against the US Dollar.
- Yesterday’s highlighted connecting bearish trend line was broken at $1020 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair may continue to move higher, but is likely to face sellers near the $1090 and $1135 levels.
Ethereum price started a recovery after a major decline against the US Dollar and Bitcoin. ETH/USD is currently facing a major resistance near $1100.
Ethereum Price Resistance
There was a sharp decline in ETH price below the $900 level against the US Dollar. The price traded below the $850 and $800 support levels. It traded toward the $750 level and formed a low at $755.82. Later, an upside correction was initiated and the price recovered above the $900 level. There was a break of the 38.2% Fib retracement level of the last drop from the $1374 high to $755 low.
It has opened the doors for more gains and the price moved above $1000. During the upside, yesterday’s highlighted connecting bearish trend line was broken at $1020 on the hourly chart of ETH/USD. The pair gained pace and is currently trading near the 50% Fib retracement level of the last drop from the $1374 high to $755 low. A break above the $1050-1065 levels won’t be easy. Should there be a break above $1065, the next major resistance levels are $1090 and $1135.
Both $1090 and $1135 are crucial barriers for buyers and a break above these would be very difficult. On the downside, an initial support is around the $1020 level. Below the stated $1020 level, the price could test the $900 level, which is a major support.
Hourly MACD – The MACD is about to move back in the bullish zone.
Hourly RSI – The RSI succeeded in moving above the 50 level, which is a positive sign.
Major Support Level – $1020
Major Resistance Level – $1135
Charts courtesy – SimpleFX
