Ether extended declines below $1,100.00 against the US dollar while gaining further versus bitcoin. ETH/USD is currently showing signs of short-term weakness.
Ether failed to hold important supports and traded toward the $1,000.00 level against the US dollar.
ETH/USD broke a crucial bullish trendline with support at $1,100.00 on the 4-hour chart.
ETH/BTC climbed higher since bitcoin price was pressured recently.
Technically, the 4-hour chart indicators moved into the bearish territory, signaling an increase in selling pressure.
Can Ether’s Price Hold $1,000?
Yesterday, we saw the start of a downside wave in ETH/USD with an important support near $1,080.00-1,100.00. The pair failed to stay above the mentioned support and declined toward the $1,000.00 level.
In contrast, ETH/BTC extended gains and broke the 0.1080BTC resistance to trade above 0.1100BTC. It seems like bitcoin price is under pressure versus the US dollar, helping ETH/BTC in gaining bullish traction.
Looking at the hourly chart of ETH/USD, the pair declined sharply and traded as low as $1,020.73. Later, it started an upside correction and broke a connecting bearish trendline with resistance at $1,070.00.
However, there are many hurdles on the upside such as $1,120.00 and $1,150.00. An intermediate resistance is around $1,130.00 and the 50 percent Fibonacci retracement level of the recent decline from the $1,238.92 high to $1,020.73 low.
On the downside, there is a short-term bullish trendline forming with support at $1,090.00. An hourly close below the mentioned $1,090.00 support could trigger a fresh downside wave.
Moving up to the 4-hour chart of ETH/USD, there is a clear downside break below a crucial bullish trendline with support at $1,100.00. The pair is currently moving higher, but it could face a significant resistance near $1,120.00 and a bearish trendline on the same chart.
To sum up, it seems like the recent break may perhaps pressurize Ether’s price in the short term. However, there is a key support on the downside around $1,000.00, which will most likely act as a barrier to further declines. As long as ETH/USD is above $1,000.00, it may consolidate and then recover.
The RSI is moving up toward the 50 level.
The MACD is currently in the bearish zone, but with a lack of momentum.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets
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