ETH price started a new downside wave and moved below the $1,000 support against the US Dollar. There was a break below a connecting bullish trend line with support at $1,120 on the hourly chart of ETH/USD
The pair is now trading well below the $1,000 level and it has moved into the bearish zone.
Ethereum continues to be strong as it is still trading above the uptrend line and above both moving averages. We are holding 50 percent of our original purchase done at $1,000 levels with the stops at breakeven.
According to FXStreet records, Ethereum has been the big winner of January, as we can see in the chart below. ETH mainly picked up steam during the second week of the past month, when it diverged paths from the rest of the Crypto board. Since then, Ethereum has been steadily keeping its edge against the other Cryptocurrencies. That said, besides this trend divergence, much more are the similarities, as we can spot very similar Momentum indicators across the Crypto board for the last couple of weeks, with every digital currency reacting to the “external” events in a similar manner.
Possible turning point
We are now focusing in a possible turning point, where the trailing Cryptocurrencies might encounter some resistance, with indicators proposing upcoming price surges. Meanwhile, Ethereum is in the opposite position, trading just above a main trendline and showing some exhaustion signs in the indicators.
Ethereum: downside potential is more likely, but everything is possible
Ethereum is trading in the final steps of a triangle. This situation has been developing for several days and it is still difficult to bet on a certain scenario.
MACD is very flat, supported at the equilibrium level. The indicator is not giving clear information right now, and it might go to any direction.
Directional Movement Index is at the equilibrium point, with buyers and sellers close to being at the same level, with sellers coming from upper levels. That kind of scenario doesn’t bring much statistical value either, so we should wait until it develops further to define the next steps to take.
Ethereum Price Resistance
There was a sudden increase in selling pressure on ETH price, which took it below the $1,000 support against the US Dollar. The downside move was initiated from the $1,150 swing high and the price moved below the $1,100 and $1,025 support levels. During the downside, there was a break below a connecting bullish trend line with support at $1,120 on the hourly chart of ETH/USD. It traded as low as $942 recently and it looks set for more declines in the near term.
An initial resistance is around the 23.6% Fib retracement level of the last decline from the $1,150 high to $942 low. However, the most important resistance is around the $1,025 level. The mentioned $1,025 level was a support earlier and it may now act as a resistance. Moreover, the 38.2% Fib retracement level of the last decline from the $1,150 high to $942 low is also around $1,025. Above the $1,025 level, the next hurdle is at $1,046. It is the 50% Fib retracement level of the last decline from the $1,150 high to $942 low.