Ethereum's recent decline: will it continue?
Ethereum's recent decline began at the $1,350 resistance against the US Dollar. ETH retested $1,255 and is still vulnerable to further losses.
The Ethereum cryptocurrency has started to decline in value again, after previously failing to break past the $1,350 resistance level. The currency has now retested the $1,255 support level, and remains at risk of further losses in the near future.
- Ethereum's price has been on a downtrend over the past few days, after failing to break past the $1,375 resistance level.
- The market is bearish and the price is now trading below $1,320 and the 100 hourly simple moving average.
- The bearish trend line on the ETH/USD chart is a key technical level to watch in the near-term. If prices continue to struggle to break above this resistance level, it could signal further downside for the pair.
- Gold prices could decline sharply if they stay below the $1,350 level for an extended period of time. This would be bad news for gold investors, as well as for those who rely on gold for economic stability.
Ethereum Price Turns Red
Ethereum's recent decline below $1,320 and the 100 hourly simple moving average suggests that ETH may continue to fall in the near-term.
The bears even pushed the price below the $1,300 level. Ether price retested the $1,260 support zone. A low was formed near $1,264 and the price is now consolidating losses. It is now trading below $1,320 and the 100 hourly simple moving average. The next support zone is near the $1,255 level. Below this, the price could retest the $1,240 level.
It is evident from the chart that the price of ETH is facing resistance near the $1,300 zone. There is also a key bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the recent decline from the $1,373 swing high to $1,264 low. Hence, it can be said that the $1,300 zone is a key resistance area for the ETH bulls.
It looks like the $1,320 level is going to be a major resistance point for the price of gold. The 100 hourly simple moving average is also near this level, and the 50% Fibonacci retracement level from the recent decline is also around $1,318. This looks like it could be a tough area for the bulls to overcome.
The Ethereum price is climbing higher today and is currently trading above the $250 level. The ETHUSD pair is looking bullish in the short-term and could continue to rise towards the $270 level.
It seems that the market is bullish on gold, with many analysts predicting further increases in the price of the precious metal. A clear break above $1,320 could start a decent increase towards the $1,350 level. Any more gains may perhaps open the doors for a move towards the $1,400 resistance zone, above which the price could surge to $1,450.
Is Ethereum in trouble? Prices have been falling steadily over the past week.
If ethereum fails to climb above the $1,320 resistance, it could start a fresh decline. An initial support on the downside is near the $1,260 level. However, if the cryptocurrency does manage to hold above this level, it could start to move back towards the $1,320 resistance.
The next major support is near the $1,250 level. A downside break below the $1,250 level might send the price towards the $1,220 support. Any more losses could increase selling and the price might drop to $1,200 or even towards $1,150. The outlook for the price of gold remains bearish in the short-term, with a further downside potential towards the $1,200 level.
Technical indicators are an important part of any trader's toolkit, providing valuable insights into the health of the market.
The MACD for ETH/USD is now losing momentum in the bearish zone. However, this could simply be a pause in the longer-term downtrend, so traders should remain cautious.
The RSI for ETH/USD is now just below the 50 level, which indicates that the market is currently in a state of slight bearishness.
The major support level for Bitcoin is currently $1,260. This means that the digital currency is likely to find some stability around this level in the short-term.
Looking at the chart, it is clear that the major resistance level for gold is $1,320.
