Ethereum’s ETH failed to clear the $1,800 zone and declined sharply. It must stay above $1,275 to start another increase in the near term.
Ethereum (ETH) Price Reaches Key Juncture
Earlier this month, ethereum climbed above the $1,600 resistance level against the US Dollar. The ETH/USD pair even cleared the $1,700 level and the 50-day simple moving average (blue).
There was a clear move above the $1,750 resistance, but the bears appeared near the $1,800 zone. The price traded as high as $1,789 and recently there was a major decline, similar to bitcoin. The bears gained strength for a push below the $1,700 and $1,600 levels.
Etheruem’s daily price chart | Source: ETHUSD on TradingView.com
There was a clear move below the 50% Fib retracement level of the main increase from the $881 swing low to $2,019 high. Ether price is now testing a crucial bullish trend line with current support at $1,320 on the daily chart.
It seems like the bulls are protecting a crucial support near the $1,300 level, but the price settled below the 50-day simple moving average (blue). The 61.8% Fib retracement level of the main increase from the $881 swing low to $2,019 high is also positioned near the $1,315 level to provide support.
The next major support is near the $1,275 zone. A close below the $1,275 level might push the price further into a bearish zone. In the stated case, the price may perhaps decline towards the $1,000 level.
Any more losses below $1,000 could push ether price towards the $881 low. Conversely, the price might form a base above $1,300 and start a fresh increase. On the upside, an immediate resistance is near the $1,450 level. The first major barrier is near the $1,600 level.
A clear move above the $1,600 resistance could send the price towards the $1,780 resistance. The next major resistance is near the $1,865 level. Any more gains might open the doors for a move towards the $2,000 resistance.
Overall, ether price is still trading near a crucial support at $1,300. If the bulls fail to protect the $1,300 and $1,275 support levels, there is a risk of a sharp decline. Conversely, there might be a fresh increase above $1,450 and $1,600 in the coming days.
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