Ethereum Price Just Reversed, $1,200 Is Coming, Here’s Why

Ethereum started to decline sharply from the $1,400 resistance against the US Dollar. ETH is heading lower and could even slide towards the $1,200 level.

  • Ethereum is gaining bearish momentum 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 major bullish trend line with support at $1,290 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to extend losses to the $1,220 and $1,200 support levels.

Ethereum price falls again

Ethereum is attempting a sharp rise above $1,350. ETH even broke above $1,380, similar to bitcoin. However, the bulls failed to clear the $1,400 resistance zone.

A high was formed near $1,399 and the price started a fresh decline. There was a clear break below the $1,350 and $1,320 support levels. The move from the $1,269 swing low to $1,399 high is clearly below the 76.4% Fib retracement level.

Additionally, there was a break below a major bullish trend line with support at $1,290 on the hourly chart of ETH/USD.Ether prices are also below $1,300, while 100 hourly simple moving average.

On the upside, the price faces resistance near $1,290 and $1,300. The next major resistance is near $1,325 and the 100 hourly SMA. A clear break above $1,325 could start a sharp rise towards the $1,380 level.

resource: ETHUSD on TradingView.com

Any more gains could open the door for a move towards the $1,400 resistance, where bulls could be targeting a strong uptick.

ETH to lose more?

If Ethereum fails to break the $1,325 resistance, it could continue to decline. Initial support on the downside is near $1,270.

The next major support is near $1,240. It is near the 1.236 Fibonacci extension level of an upward move from a swing low of $1,269 to a high of $1,399. A break below the $1,240 level could push the price towards the $1,200 support in the near term. Any more losses could increase selling and the price could drop to $1,150.

Technical indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support – $1,240

Major Resistance – $1,325

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