Ethereum Price Consolidates Below $1,300: What Could Trigger A Sharp Decline?

Ethereum tested the key $1,265 support zone against the US Dollar. ETH might correct higher, but upsides could face hurdles near $1,300 and $1,310.

• Ethereum remains in a bearish zone 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 above a connecting bearish trend line with resistance near $1,285 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair remains at a risk of a sharp decline if it stays below the $1,300 pivot level.

Ethereum gained bearish pace and settled below the $1,300 support zone. ETH even declined below the $1,280 level and settled below the 100 hourly simple moving average.

There was a minor push below yesterday’s low, but the bulls were active near the $1,265 zone. A low was formed near $1,268 and the price is now correcting higher. There was a short-term wave above the $1,280 level. Ether price was able to clear the 23.6% Fib retracement level of the recent drop from the $1,337 swing high to $1,268 low.

Besides, there was a break above a connecting bearish trend line with resistance near $1,285 on the hourly chart of ETH/USD. It is now trading below $1,300 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,295 level. The first major resistance is near the $1,300 level. It is close to the 50% Fib retracement level of the recent drop from the $1,337 swing high to $1,268 low. If there is an upside break above the $1,300 resistance zone, ethereum price might rise towards the $1,320 resistance.

Source: ETHUSD on TradingView.com

A clear break above $1,320 could send the price further higher. The next major resistance could be near the $1,350 level, above which the price could revisit $1,400.

If ethereum fails to recover above the $1,300 resistance, it could continue to move down. An initial support on the downside is near the $1,270 level.

The next major support is near the $1,265 level. A downside break below the $1,265 might spark a sharp decline. In the stated case, ether price may perhaps decline towards the $1,200 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above to the 50 level.

Major Support Level – $1,265

Major Resistance Level – $1,300