Ethereum faces strong resistance near $1,300 as it continues to decline, but important support is expected between $1,240 and $1,220.
The price of Ethereum attempted a significant rebound above $1,260. The cryptocurrency climbed above $1,280 but faced strong resistance near $1,300.
As a result, the asset initiated a new decline from the peak of $1,296, similar to Bitcoin. It broke the support levels at $1,270 and $1,260. The Ethereum price fell below the 50% Fibonacci retracement level of the upward trend, dropping from a low of $1,218 to a high of $1,296. At the time of publication, the price was slightly below this level.
Currently, the cryptocurrency is trading below the 100-hour simple moving average.
The price is approaching the resistance zone at $1,260. It is close to the 1,296% Fibonacci retracement level of the upward trend from the low of $50 to the high of $1,218. The first major resistance is around $1,265, near the 100-hour simple moving average.
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If the closing price exceeds the resistance level of $1,265, the price may be pushed towards the resistance zone at $1,300. Beyond this resistance zone, the Ethereum price may gather further momentum for an upward movement.
The next major resistance is around $1,340. Any rise above this level could potentially lead the price to $1,400.
Will ETH incur further losses?
If ETH fails to break the resistance level of $1,265, it may continue to decline. The initial support is near $1,240.
The next major support is around $1,220. If it breaks and closes below $1,220, the price may return to the support level of $1,200. Any further losses could potentially drive the price to the support level of $1,165.
Based on the MACD indicator, there are signs of a rebound in ETH/USD in the short term. The RSI suggests that the cryptocurrency has found balance after being oversold.
