TA: Ethereum Facing Major Hurdles: Why 100 SMA Could Trigger Fresh Rally

Ethereum struggled to clear $1,150 and started a fresh decline against the US Dollar. ETH price is currently trading well below the 100 hourly SMA and $1,100.

  • Ethereum is showing a few bearish signs after getting rejected from the $1,150 resistance zone.
  • The price is now trading well below $1,100 and the 100 hourly simple moving average.
  • There is a key bearish trend line in place with resistance near $1,070 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must settle above $1,120 and the 100 hourly SMA to start a fresh rally.

Ethereum Price Could Decline Again

Yesterday, we saw a decent recovery wave in bitcoin, ethereum, ripple and other altcoins. ETH price broke the $1,080 and $1,100 resistance levels. It even spiked above the $1,120 level.

However, the bears defended a major resistance zone near $1,150 and the 100 hourly simple moving average. A high was formed near $1,152 before the price started a fresh decline. There was a break below the $1,120 and $1,100 support levels.

Ether price even declined below the 50% Fib retracement level of the recovery wave from the $910 swing low to $1,152 high. There is also a key bearish trend line in place with resistance near $1,070 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

If there is no upside break above the trend line resistance and the 100 hourly simple moving average, there is a risk of more losses. An initial support is near the $1,000 level or the 61.8% Fib retracement level of the recovery wave from the $910 swing low to $1,152 high.

The next major support is near the $950 level, below which ether price might continue to move down towards the $900 and $880 levels in the near term.

Fresh Increase in ETH?

If ethereum breaks the trend line resistance and $1,100, it could start a decent increase. The main resistance is still near the $1,150 zone and the 100 hourly simple moving average.

A close above the $1,150 level and the 100 hourly SMA could change the current bias. The next hurdle for the bulls above the $1,150 zone is near the $1,220 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is struggling to gain pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is still below the 50 level, with a bearish angle.

Major Support Level – $1,000

Major Resistance Level – $1,150

Publication date: 
01/13/2021 - 07:28
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.