Ethereum started a fresh decline from the $1,350 resistance against the US Dollar. ETH retested $1,255 and remains at a risk of more losses.
- Ethereum started another decline after it failed to clear the $1,375 zone.
- The price is now trading below $1,320 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline sharply if it stays below the $1,350 level for a long time.
Ethereum Price Turns Red
Ethereum failed to gain pace above the $1,350 resistance zone. ETH started a fresh decline below the $1,320 support zone and the 100 hourly simple moving average.
The bears even pushed the price below the $1,300 level. Ether price retested the $1,260 support zone. A low was formed near $1,264 and the price is now consolidating losses. It is now trading below $1,320 and the 100 hourly simple moving average.
On the upside, the price is facing resistance near the $1,300 zone. There is also a key bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the recent decline from the $1,373 swing high to $1,264 low.
The first major resistance is near the $1,320 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $1,373 swing high to $1,264 low is also near $1,318.
Source: ETHUSD on TradingView.com
A clear break above $1,320 might start a decent increase towards the $1,350 level. Any more gains may perhaps open the doors for a move towards the $1,400 resistance zone, above which the price could surge to $1,450.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,320 resistance, it could start a fresh decline. An initial support on the downside is near the $1,260 level.
The next major support is near the $1,250 level. A downside break below the $1,250 level might send the price towards the $1,220 support. Any more losses could increase selling and the price might drop to $1,200 or even towards $1,150.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $1,260
Major Resistance Level – $1,320
Source: https://www.newsbtc.com/analysis/eth/ethereum-price-recovery-could-1350/