Ethereum Price Takes Hit
Ethereum (ETH) is down over 15% and trading well below $2,000. The bears could now aim for a move toward $1,200 or even $1,000.
In the past few days, Ethereum struggled to recover and settle above the $2,250 resistance zone. ETH started a fresh decline and settled below the $2,000 support zone. It sparked more bearish moves like Bitcoin.
There was a close below a major bullish trend line with support at $2,200 on the weekly chart. The bears gained strength below the 76.4% Fib retracement level of the key rise from the $2,099 swing zone to the $4,087 high.
Ethereum is now trading well below the $2,000 pivot level and the 50-week simple moving average (blue). The price is down over 15% in a day due to the recent trade war by Trump.
The current price action is bearish and suggests a high chance of more losses below the $1,550 support zone. If the bulls fail to keep the price above the $1,550 support zone, ETH could see heavy bearish moves.
Immediate support is near the $1,380 level. The first major support is near the $1,200 level. A weekly close below the $1,200 support could trigger a nasty drop. In the stated case, the price might decline toward the $1,000 region.
Any more losses might send ETH toward the $870 level in the medium term. It coincides with the 1.236 Fib extension level of the key rise from the $2,099 swing zone to the $4,087 high. The next stop for the bears could be the $750 level.
Recovery In ETH?
If Ethereum bulls remain active near the $1,550 zone or $1,380, there could be a recovery wave. Immediate resistance is near the $1,800 level. The first major resistance is $2,000.
The next resistance is now forming near the $2,100 zone. A clear move above the $2,100 resistance might send the price toward the $2,250 resistance and the same trend line. To start a decent increase and a trend change, ETH must settle above $2,250.
In the stated case, the price could rally and revisit the 50-week simple moving average (blue) at $2,850. If the price clears the $2,850 resistance, it could gain bullish momentum and rise toward the $3,260 resistance.
Overall, Ethereum price is signaling a breakdown below $2,000. If the bulls fail to protect $1,550, ETH could dive toward $1,200 or even $1,000.