TA: Ethereum Price Just Reversed and $1,200 is Imminent, Here’s Why

Ethereum started a major decline from the $1,400 resistance against the US Dollar. ETH is moving lower and might even slide towards the $1,200 level.

• Ethereum gained 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 could extend its decline towards the $1,220 and $1,200 support levels.

Ethereum attempted a decent increase above the $1,350 level. ETH even broke the $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 move below the $1,350 and $1,320 support levels. There was a clear move below the 76.4% Fib retracement level of the upward move from the $1,269 swing low to $1,399 high.

Besides, there was a break below a major bullish trend line with support at $1,290 on the hourly chart of ETH/USD. Ether price is also trading below $1,300 and the 100 hourly simple moving average.

On the upside, the price is facing resistance near the $1,290 and $1,300 levels. The next major resistance is near $1,325 level and the 100 hourly SMA. A clear break above $1,325 might start a decent increase towards the $1,380 level.

Source: ETHUSD on TradingView.com

Any more gains may perhaps open the doors for a move towards the $1,400 resistance, above which the bulls could aim a strong increase.

If ethereum fails to climb above the $1,325 resistance, it could continue to move down. An initial support on the downside is near the $1,270.

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

Technical Indicators

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 – $1,240

Major Resistance Level – $1,325