Ethereum recently experienced a significant drop from the $1,500 level. The price has dropped by more than 10% in the last 24 hours and now it is possible that this drop will continue up to $1,200.
To Report NewsBTC, two days ago Ethereum’s attempt to return above $1,500 was unsuccessful and the price finally reached its all-time high at $1,475.
A little later, the price fell below $1,400 and the 100-hour simple moving average (MA 100 – blue line in the picture) and continued to lose support at $1,350 and $1,320. This 10% drop eventually led to a drop in the price of Ethereum to the bottom of $1,288.
Ethereum has now moved above $1,280, but is still trading below the 100-hour simple moving average. If the market goes up, $1,332, which is near the 23.6% Fibonacci retracement level, will be the closest resistance to the price. It should be mentioned that in this analysis Fibonacci levels are set based on the downward movement of the price from $1,474 to the bottom of $1,288.
The next key resistance is near $1,360 and $1,380, and the downtrend line on the chart and the 50% Fibonacci retracement level also form resistance in the same area.
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A full price break above the $1,380 level could pave the way for Ethereum to jump to $1,440, after which buyers will have the opportunity to push the price to $1,480 in the short term.
On the other hand, if Ethereum fails to break through the $1,360 resistance, the downtrend will continue. In such a situation, $1,300 will be the closest support in front of Ethereum. Ethereum’s next key support is $1,260. It should be noted that the breaking of this support can lead to a price drop of up to $1,200.
The MACD is accelerating in the bearish range and the Relative Strength Index (RSI) is below the middle axis at the 50 level.
As mentioned, $1,300 is the key support for Ethereum, and $1,360 is the main resistance for the price.