Ethereum’s ETH price is down over 20% and facing a lot of sellers. The price is recovering, but upsides might be limited above the $1,270 resistance.
Ethereum Price (ETH) Dives To $1,100
In the past few sessions, ethereum and bitcoin saw a major drop from well above $1,600 and $20,000 respectively against the US Dollar. The ETH/USD pair started a major decline from the $1,678 high and traded below the $1,500 support.
During the decline, there was a move below a bullish trend line with support at $1,600 on the 4-hours chart. It opened the doors for a strong decline below $1,500 and the 50 simple moving average (4-hours, blue).
The price declined below the $1,350 support zone. There was even a break below the $1,220 support zone and ether price tested the $1,100 zone.
A low was formed near $1,073 and the price is now correcting losses. It recovered a few points and climbed above the $1,150 level. The bulls pushed the price above the $1,200 level. It is now facing resistance near the 23.6% Fib retracement level of the downward move from the $1,678 swing high to $1,073 low.
An immediate resistance is near the $1,250 level. The first major resistance is near the $1,270 level. A clear move above the $1,250 and $1,270 resistance levels might send the price towards the $1,375 resistance.
The 50% Fib retracement level of the downward move from the $1,678 swing high to $1,073 low is also near the $1,375 level. Any more gains might open the doors for a move towards the $1,500 resistance.
If there is no upside break above the $1,270 resistance, the price might continue to move down. An immediate support on the downside sits near the $1,120 level. The next major support is near $1,080 level.
A close below the $1,080 level might send the price towards the $1,000 support. Any more losses below $1,000 could start a strong bearish wave. In the stated case, there is a risk of a move towards the $880 zone.
Overall, ether price is correcting losses and trading above $1,200. If there is no move above $1,250 and $1,270, it could resume its drop. Conversely, the price might rise towards the $1,375 resistance.
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