Ethereum declined sharply from the $1,500 resistance zone against the US Dollar. ETH is down over 10% and there could be more losses towards the $1,200 support.
- Ethereum started a fresh decline after it failed to clear the $1,500 resistance zone.
- The price is now trading below $1,400 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate further lower below the $1,300 support zone in the near term.
Ethereum Price Starts Fresh Drop
Ethereum failed to gain strength for a move above the $1,480 and $1,500 resistance levels. ETH formed a top near the $1,475 level and started a fresh decline.
There was a steady decline below the $1,400 level and the 100 hourly simple moving average. The price even traded below the $1,350 and $1,320 support levels. There was a drop over around 10% and the price traded as low as $1,288.
Ether price is now consolidating losses above the $1,280 level and below the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,335 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,474 swing high to $1,288 low.
The next major resistance is near the $1,360 and $1,380 levels. There is also a key bearish trend line forming with resistance near $1,360 on the hourly chart of ETH/USD. It is near the 50% Fib retracement level of the recent decline from the $1,474 swing high to $1,288 low.
Source: ETHUSD on TradingView.com
A clear break above $1,380 might send the price towards the $1,440 level. Any more gains may perhaps open the doors for a move towards the $1,480 resistance in the near term.
More Losses in ETH?
If ethereum fails to rise above the $1,360 resistance, it could continue to move down. An initial support on the downside is near the $1,300 zone.
The next major support is near $1,260. A downside break below the $1,260 support might another sharp decline. In the stated case, ether price might decline towards the $1,200 level.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,300
Major Resistance Level – $1,360
Ethereum Marks Three Consecutive Red Weekly Closes, Will Uptober Change Its Trajectory?
Ethereum has been one of the cryptocurrencies that have received major support from the crypto community regardless of how the price performs in the market. Since the Ethereum Merge was completed, though, the digital asset has not performed as well as expected. ETH’s price has continuously bled out, which has led to its price relegating to the low $1,000s. As the new month begins, speculations abound on whether the cryptocurrency has what it takes to recover.
Three Red Weekly Closes
Along with the rest of the crypto market, Ethereum’s price has suffered bitterly at the hands of the bulls. Once again, the curse of September reared its ugly head, and digital assets across the space saw more red than green during this time period. Ethereum itself had closed out the month with three consecutive red weekly closes, which has greatly impacted its performance in the market.
Over the last few weeks, the resistance to the digital asset has been mounting, and the bears have made a solid stand just above the $1,400 level. This is evidenced by ETH’s inability to beat this point, even with some rise in momentum.
ETH sees three consecutive red weekly closes | Source: ETHUSD on TradingView.com
Interestingly, Ethereum’s chart looks eerily similar to the same trend that was recorded back in September of 2021. This had been in the middle of the bull market right before ETH had hit its all-time high above $4,900. The digital asset had recorded three consecutive red closes, followed by a green close. What followed would be two months of weekly green closes that saw the cryptocurrency surge by more than 48%.
If this trend holds and Ethereum is able to successfully break through the $1,400 resistance point this week, then ETH’s price could rally to $1,800 over the next two months before eventually losing steam.
Can Ethereum Hold Up?
The weakness of ETH following the Merge has done a number on not only the digital asset but on investor sentiment. The majority of investors still opt to hold their coins for the long term. However, the sell-offs continue to wax stronger at this time.
Mainly, all eyes are on the Ethereum staking contract, where more and more of the supply are being sent each day. The contract currently sits at more than 14.1 million ETH are already staked, accounting for about 12% of the total supply. And since there is presently no way to withdraw these ETH, they are temporarily taken out of circulation, causing a significant drop in supply.
Nevertheless, the majority of ETH investors are still in profit despite the current low prices. This 53% of investors who have mostly held their coins for longer than a year remains in the green. However, profit-taking continues with exchange inflows reaching $4.49 billion for the last 7 days compared to outflows of $4.44 billion.
Featured image from El Cronista, chart from TradingView.com
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Bitcoin, Ethereum Technical Analysis: BTC Back Above $20,000, USD Hits 2-Week Low
Bitcoin was back above $20,000 on Tuesday, as the U.S. dollar fell to its lowest point in two weeks versus several G7 currencies. The stronger dollar has impacted purchasing power in cryptocurrencies, and commodities like crude oil, which last week fell to a nine-month low. Ethereum was also up, hitting a five-day high.
Bitcoin (BTC) briefly rose above $20,000 on Tuesday, as the U.S. dollar continued to decline versus other major currencies.
This has resulted in the world’s largest cryptocurrency climbing to a peak of $20,071.20 earlier in today’s session.
Today’s high is the strongest point that BTC/USD has traded at since September 30, and is marginally below a ceiling of $20,200.
As can be seen from the chart, earlier bulls retreated from the market as BTC neared the aforementioned resistance point.
Overall, the rally began following a breakout of another point of uncertainty, this being the ceiling of 49.00 on the relative strength index (RSI).
The index is now tracking at 52.22, which is slightly below a resistance of 53.00, and this seems to be another reason why BTC has slipped from its earlier high.
Like BTC, ethereum (ETH) also rose to a five-day high in today’s session, moving above a key resistance level in the process.
Following a low of $1,294.41 to start the week, ETH/USD raced to an intraday high of $1,355.89 earlier in the day.
The move saw ethereum break out of its ceiling of $1,330, with the 14-day RSI also moving beyond a point of resistance.
Looking at the chart, the indicator rose above its ceiling of 41.50, and as of writing, is tracking at 44.82.
This is the strongest reading for the index since September 15, when ETH was trading at a high of $1,470.
In order to move back towards those levels, the RSI will need to break out of an upcoming ceiling of 45.00.
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Could we see ethereum hit $1,400 before the end of the day? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
TA: Ethereum Price Could Rally If It Closes Above This Key Level
Ethereum is showing positive signs above the $1,300 level against the US Dollar. ETH could rally if it clears the $1,330 and $1,350 resistance levels.
- Ethereum is slowly moving higher and trading above the $1,300 level.
- The price is now trading above $1,310 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $1,320 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if there is a clear move above the $1,350 resistance.
Ethereum Price Remains Supported
Ethereum remained well bid above the $1,250 level. There was a minor increase above the $1,280 and $1,288 levels. ETH is showing positive signs above the $1,300 level and the 100 hourly simple moving average.
The price climbed above the 50% Fib retracement level of the downward move from the $1,372 swing high to $1,265 swing low. The price even settled above the $1,310 level and the 100 hourly simple moving average.
There is also a key bullish trend line forming with support near $1,320 on the hourly chart of ETH/USD. On the upside, the price is facing resistance near the $1,330 zone. It is near the 61.8% Fib retracement level of the downward move from the $1,372 swing high to $1,265 swing low.
Source: ETHUSD on TradingView.com
A clear break above $1,330 might start a decent increase towards the $1,355 level. If the bulls remain in action, the price could rise towards the $1,375 level. Any more gains may perhaps open the doors for a move towards the $1,400 resistance zone. The next major resistance sits near the $1,450 level.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,355 resistance, it could start a fresh decline. An initial support on the downside is near the $1,320 level and the trend line.
The next major support is near the $1,290 level. A downside break below the $1,290 level might send the price towards the $1,255 support. Any more losses could increase selling and the price might drop to $1,220 or even towards $1,200 in the coming sessions.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level.
Major Support Level – $1,320
Major Resistance Level – $1,375
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