Ethereum failed to clear the $1,300 resistance zone against the US Dollar. ETH is declining and there is a risk of a drop below the $1,265 support.
Ethereum is still showing bearish signs below the $1,350 and $1,320 support levels.
The price is now trading below $1,300 and the 100 hourly simple moving average.
There was a break below a key rising channel with support at $1,290 on the hourly chart of ETH/USD (data feed via Kraken).
The pair remains at a risk of more losses unless there is a clear move above the $1,300 level.
Ethereum Price Remains In a Downtrend
Ethereum started a minor upside correction from the $1,265 support zone. ETH traded as low as $1,268 and recovered above the $1,280 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $1,338 swing high to $1,268 low. Ether price even attempted a clear move above the $1,300 resistance zone and the 100 hourly simple moving average.
However, the bulls failed to gain strength for a close above $1,300. Ethereum price failed to clear the 50% Fib retracement level of the downward move from the $1,338 swing high to $1,268 low.
There was a fresh decline from $1,300. Besides, there was a break below a key rising channel with support at $1,290 on the hourly chart of ETH/USD. The pair is now trading below $1,300 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
Immediate resistance on the upside is near the $1,298 level. The first major resistance is near the $1,300 level. A clear upside break above the $1,300 resistance zone could open the doors for a steady increase. In the stated case, the price may perhaps rise toward the $1,350 resistance. Moreover, it could help bitcoin and other altcoins in gaining pace.
Sharp Drop in ETH?
If Ethereum fails to recover above the $1,300 resistance, it could continue to move down. Initial support on the downside is near the $1,275 level.
The next major support is near the $1,265 level. A downside break below $1,265 might start a major decline toward $1,200. Any more losses may perhaps open the gates for a move toward the $1,000 support.
Technical Indicators
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 – $1,265
Major Resistance Level – $1,300
