Ethereum Price Downtrend Far From Over, Why ETH Could Drop Below $1K

Ethereum’s ETH price is showing bearish signs below $1,300. The price is moving lower and remains at a risk of a sharp drop towards $1,000.

Ethereum Price (ETH) Remains At Risk

In the past few days, ethereum and bitcoin attempted a short-term recovery wave against the US Dollar after the massive collapse of FTX. The ETH/USD pair formed a base above the $1,070 and started an upside correction.

There was a slow and steady wave above the $1,150 and $1,200 resistance levels. The price even spiked above the $1,300 level, but it stayed below the 50 simple moving average (4-hours, blue).

The price failed to surpass $1,350 and traded as high as $1,345. Ether price started a fresh decline and settled below the $1,300 level. There was a clear move below the 50% Fib retracement level of the recovery wave from the $1,073 swing low to $1,345 high.

It is now trading well below $1,250 and the 50 simple moving average (4-hours, blue). There is also a declining channel forming with resistance near $1,250 on the 4-hours chart.

An immediate resistance is near the $1,240 level. The first major resistance is near the $1,250 level. A clear move above the $1,240 and $1,250 resistance levels might send the price towards the $1,285 resistance.

The main breakout zone is near $1,300 and $1,345. Any more gains might open the doors for a move towards the $1,500 resistance. If there is no upside break above the $1,250 resistance, the price might continue to move down.

More Losses?

An immediate support on the downside sits near the $1,177 level. It is near the 61.8% Fib retracement level of the recovery wave from the $1,073 swing low to $1,345 high. The next major support is near $1,150 level.

A close below the $1,150 level might send the price towards the $1,000 support. Any more losses below $1,000 could lead the price towards the $880 zone.

Overall, ether price is struggling to recover above the $1,250 and $1,300 levels. If there is no move above $1,240 and $1,250, it could resume its drop. Conversely, the price might rise towards the $1,345 resistance.