Ethereum Price Suffers Setback, This Triangle Could Start Another Decline

Ethereum started a fresh decline from the $1,320 resistance against the US Dollar. ETH is struggling and remains at a risk of a move below $1,150.

• Ethereum started another decline and traded below the $1,200 support.
• The price is now trading below $1,200 and the 100 hourly simple moving average.
• There is a key contracting triangle forming with resistance near $1,190 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down unless the price climbs above the $1,220 resistance.

Ethereum Price Turns Red

Ethereum price failed to stay above the $1,300 support zone. ETH reacted to the downside and traded below the $1,250 support zone to move into a bearish zone, similar to bitcoin.

The decline gained pace below the $1,200 level and the 100 hourly simple moving average. Ether price traded as low as $1,154 and is currently consolidating losses. There was a minor increase above the $1,180 resistance zone, but the bears remained active.

Ether price is now trading below $1,200 and the 100 hourly simple moving average. It is also trading below the 23.6% Fib retracement level of the downward move from the $1,350 swing high to $1,154 low.

An immediate resistance on the upside is near the $1,190 level. There is also a key contracting triangle forming with resistance near $1,190 on the hourly chart of ETH/USD. The first major resistance is near the $1,210 level and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

A close above the $1,220 resistance might start a decent increase. The next major resistance could be $1,260 or the 50% Fib retracement level of the downward move from the $1,350 swing high to $1,154 low, above which ether could rise towards $1,300. Any more gains might send the price towards the $1,350 resistance zone.

More Losses in ETH?

If ethereum fails to climb above the $1,220 resistance, it could continue to move down. An initial support on the downside is near the $1,170 level.

The next major support is near the $1,150 level, below which the price could gain bearish momentum towards the $1,100 support. Any more losses could lead the price towards the $1,050 support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

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

Major Support Level – $1,150

Major Resistance Level – $1,220

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