TA: Ethereum Recovery Faces Major Hurdle, Risk of Fresh Decline Exits

Ethereum declined towards $1,350 before recovering higher against the US Dollar. ETH is now facing a major resistance near the $1,460 and $1,500 levels.

Ethereum extended losses and traded below the $1,400 level.
The price is now trading below $1,460 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,440 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could struggle to recover above the $1,440 and $1,460 resistance levels.

Ethereum Price Remains In Bearish Zone

Ethereum remained in a bearish zone below the $1,500 level. ETH started another decline and traded below the key $1,400 support zone.

The price even spiked below the $1,360 level and traded as low as $1,257. It is now attempting a recovery wave above the $1,400 resistance zone. There was a move above the 23.6% Fib retracement level of the downward move from the $1,662 swing high to $1,357 low.

However, ether price is trading below $1,460 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,440 level.

There is also a major bearish trend line forming with resistance near $1,440 on the hourly chart of ETH/USD. The first major resistance is near the $1,480 zone and the 100 hourly simple moving average. The main resistance is now forming near the $1,500 zone.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the downward move from the $1,662 swing high to $1,357 low is also near the $1,500 zone. A clear move above the $1,500 level could start a decent increase. In the stated case, the price may perhaps rise towards the $1,550 resistance zone.

More Losses in ETH?

If ethereum fails to rise above the $1,480 resistance, it could continue to move down. An initial support on the downside is near the $1,400 zone.

A clear move below the $1,400 support might spark another decline. In this case, ether price may perhaps revisit the $1,350 support. Any more losses might even push the price to the $1,300 support or even $1,250 in the near term.

Technical Indicators

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

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

Major Support Level – $1,400

Major Resistance Level – $1,480

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