Ethereum tested the $1,000 support yesterday. ETH is rallying but it must surpass $1,280 for it to start a decent upward move, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Faces Major Resistance
Ethereum started a fresh decline below the $1,100 level yesterday. The price traded to a multi-month low and almost tested the $1,000 support zone. It formed a low near $1,013 before the price started an upside correction. There was a recovery wave above the $1,120 and $1,150 levels. ETH climbed above the 23.6% Fib retracement level of the low from the $1,546 low to $1,013 low.
There was also a break above a major bearish trend line with resistance near $1,205 on the hourly chart of ETH/USD. The price is still trading below the $1,280 and 100 hourly simple moving average.
The next major resistance is near the $1,280 zone and the 100 hourly simple moving average. The 50% Fib retracement level of the decline from the $1,546 low to $1,013 low is also near the $1,280 zone. A clear move above the $1,280 resistance zone
could start a decent upward move. The next major resistance is near the $1,420 level. Any more gains could start a move towards the $1,550 resistance.
Will Ethereum Fall Again?
Jindal says if Ethereum fails to break above the $1,280 resistance, it could start a fresh decline. An initial support is near the $1,180 area. The next major support is near the $1,125 area. A clear move and break below the $1.125 zone could start a major decline. In the stated case, the price could slide towards the $1,000 support zone in the near term.
What Do Technical Indicators Say?
- 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.
- Major Support – $1,125
- Major Resistance – $1,280
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