Key Highlights
- ETH price declined sharply this past week and traded as low as $740 against the US Dollar.
- There was a break below a major bullish trend line with support at $1,115 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair is currently correcting higher, but it is facing a major resistance on the upside at $1,020.
Ethereum price is in a bearish zone against the US Dollar, but it is stable against Bitcoin. ETH/USD is currently recovering higher, but it is facing a crucial hurdle near $1,020.
Ethereum Price Upside Hurdle
There was a major downside move from well above $1,100 in ETH price against the US Dollar. The price declined heavily and moved below the $1,100 and $1,020 support levels. During the downside move, there was a break below a major bullish trend line with support at $1,115 on the 4-hours chart of ETH/USD. The pair traded below the $900 level and is currently well below the 100 simple moving average (4-hours).
A low was formed at $740 from where an upside correction was initiated. The pair managed to recover above the 50% Fib retracement level of the last major decline from the $1,150 high to $740 low. However, there are many resistances on the upside around the $1,020 level. There is a bearish trend line on the same chart with resistance at $1,025. The trend line resistance at $1,025 is also near the 100 simple moving average (4-hours). At present, the 61.8% Fib retracement level of the last major decline from the $1,150 high to $740 low is acting as a resistance.
Therefore, the $1,020 and $1,025 levels are important resistance levels. It won’t be easy for buyers to clear $1,020 to push the price further higher.
4-hours MACD – The MACD is currently reducing the bearish pressure.
4-hours RSI – The RSI is currently struggling to move back above the 50 level.
Major Support Level – $880
Major Resistance Level – $1,020
Charts courtesy – SimpleFX