Ethereum dropped close to 20% and tested the $ 1,050 zone against the US Dollar. ETH price is currently recovering, but it could struggle within the $ 1,200 and $ 1,250 bands.
Ethereum dropped drastically after breaking the $ 1,250 and $ 1,200 support levels.
The price is currently correcting losses from $ 1,042. However, it is well below the 100 hour simple moving average.
There is a key bearish trend line showing resistance near $ 1,300 on the hourly chart of ETH / USD.
The pair could retract further, but the previous support near $ 1,250 is likely to act as a strong resistance.
Ethereum price saves losses
Over the past 3-4 sessions, there has been a bad drop in Bitcoin and Ethereum below $ 32,000 and $ 1,200 respectively.
ETH price dropped almost 20% and broke many supports such as $ 1,150 and $ 1,120.
Traded near $ 1,040, ETH settled well below the 100 hourly simple moving average. A low was formed around $ 1,042 and the price is currently up. There was a break above the $ 1,100 resistance level and the price is showing several positive signs.
The next resistance could be near $ 1,215. There is a key bearish trend line with resistance near $ 1,300 on the hourly chart of ETH / USD.
If there is a clear break above $ 1,215, the price is likely to see strong selling interest near the $ 1,250 level in the coming sessions. More wins could open the doors for a new rally towards $ 1,400.
If Ethereum cannot move above the $ 1,200 and $ 1,210 levels, it is in risk of a new downside. The first downside support is near the $ 1,120 level.
The first major support is near the $ 1,100 level. The main support is currently forming near the $ 1,050 level. If Ethereum cannot stay above the $ 1,050 support, it could even drop below the $ 1,000 support level.
Hourly MACD – The MACD for ETH / USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH / USD is currently rising towards the 40 level.
Support Level: $ 1,120.
Resistance Level – $ 1,250.