what could trigger a sharp drop

Ethereum fell below the $1,100 area against the US Dollar. ETH is likely to gain bearish momentum if it breaks the $1,030 support area.

  • Ethereum faces resistance near $1,100 and $1,120.
  • The price is now trading below $1,150 and the 100 hourly simple moving average.
  • On the hourly chart of ETH/USD (data feed via Kraken), a key bearish trend line is forming with resistance near $1,080.
  • If there is a clear break below the $1,030 and $1,000 levels, the pair is likely to decline sharply.

Ethereum price faces hurdles

Ethereum started Downside correction After it failed near $1,190 and $1,200. ETH corrected lower and traded below the $1,120 support area.

The move from the $880 swing low to $1,192 high was clearly below the 23.6% Fib retracement level of the upside wave. Ether price even fell below the $1,150 area, 100 hourly simple moving average. However, the bulls are active above the $1,030 support.

Ether price is holding above the 50% Fib retracement level of the upside wave from the $880 swing low to $1,192 high. Immediate resistance on the upside is near $1,080.

There is also a key bearish trend line forming with resistance near $1,080 on the hourly chart of ETH/USD. The next major resistance is near $1,120. The main resistance is near $1,150. A clear break above the $1,150 resistance could start a steady rise.

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,200 or $1,192 high. Any further gains could start a move towards the $1,280 resistance in the near term.

ETH to lose more?

If Ethereum fails to break the $1,120 resistance, it could continue to decline. Initial support on the downside is near $1,040.

The next major support is near $1,030. A close below $1,030 could push the price below $1,000. In the above-mentioned scenario, Ether price could drop to the $950 level. Any more losses will likely require a move towards the $880 support area in the coming sessions.

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 – $1,030

Major Resistance – $1,120

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