Ethereum Price (ETH) Recovery Could Turn Attractive To Sellers, USDT Depegs

Key Takeaways:

  • Ether price dived and tested the $1,100 support zone.
  • ETH/USD declined heavily below a bullish trend line with support at $1,600 on the 4-hours chart.
  • USDT depegged and is under a lot of selling pressure amid FTX bankruptcy.

Ethereum’s ETH price is down over 20% and facing a lot of sellers. The price is recovering, but upsides might be limited above the $1,270 resistance.

Ethereum Price (ETH) Dives To $1,100

In the past few sessions, ethereum and bitcoin saw a major drop from well above $1,600 and $20,000 respectively against the US Dollar. The ETH/USD pair started a major decline from the $1,678 high and traded below the $1,500 support.

Ethereum Price (ETH) Recovery Could Turn Attractive To Sellers, USDT Depegs
Ethereum Price (ETH) Dives To $1,100 | Photo by Kanchanara on Unsplash

During the decline, there was a move below a bullish trend line with support at $1,600 on the 4-hours chart. It opened the doors for a strong decline below $1,500 and the 50 simple moving average (4-hours, blue).

ETH price 4-hours price chart
Etheruem price 4-hours price chart | Source: ETH/USD on TradingView.com
The price declined below the $1,350 support zone. There was even a break below the $1,220 support zone and ether price tested the $1,100 zone.

A low was formed near $1,073 and the price is now correcting losses. It recovered a few points and climbed above the $1,150 level. The bulls pushed the price above the $1,200 level. It is now facing resistance near the 23.6% Fib retracement level of the downward move from the $1,678 swing high to $1,073 low.

An immediate resistance is near the $1,250 level. The first major resistance is near the $1,270 level. A clear move above the $1,250 and $1,270 resistance levels might send the price towards the $1,375 resistance.

The 50% Fib retracement level of the downward move from the $1,678 swing high to $1,073 low is also near the $1,375 level. Any more gains might open the doors for a move towards the $1,500 resistance.

If there is no upside break above the $1,270 resistance, the price might continue to move down. An immediate support on the downside sits near the $1,120 level. The next major support is near $1,080 level.

A close below the $1,080 level might send the price towards the $1,000 support. Any more losses below $1,000 could start a strong bearish wave. In the stated case, there is a risk of a move towards the $880 zone.

Overall, ether price is correcting losses and trading above $1,200. If there is no move above $1,250 and $1,270, it could resume its drop. Conversely, the price might rise towards the $1,375 resistance.

close
eth, Ethereum Price (ETH) Recovery Could Turn Attractive To Sellers, USDT Depegs

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com WestcoastNFT.com