• Ethereum failed to stay above the $ 1,200 support and fell below $ 1,150.
• The price dropped 20% and is approaching the $ 1,000 support and the 100 hourly simple moving average.
• There was a break below a major rising channel with support near $ 1,250 on the hourly chart of ETH / USD (based on Kraken data).
• The pair is likely to find strong support near the $ 1,000 zone and the 100 hourly SMA.

Ethereum (ETH) Price Experiencing A Hard Correction

There was a strong downside correction below $ 38,000 and $ 1,100 respectively in Bitcoin and Ethereum. ETH price failed to stay above the $ 1,200 support and fell below $ 1,150.

There was a strong bearish wave after closing below the $ 1,200 level. More importantly, there was a break below a major rising channel with support near $ 1,250 on the hourly chart of the ETH / USD pair.

The pair broke the 50% Fib retracement level of the critical upward move from the $ 890 high to $ 1,351. ETH price dropped 20% and approached the $ 1,000 support and the 100 hourly simple moving average.

The 76.4% Fib retracement level of the critical upward move from $ 890 to $ 1,351 approached the $ 1,000 level, operating as a strong support level. The 100 hourly simple moving average is also close to the $ 1,000 zone to act as a strong support in the near term.

If the ETH price does not stay above the $ 1000 support and the 100 hourly simple moving average, it risks falling to the $ 900 support level in the coming sessions.

Will Ethereum (ETH) increase?

If Ethereum stays above the $ 1000 support and the 100 hourly simple moving average, it could initiate a new surge. An initial resistance on the upside is near the $ 1,180 level.

The first critical resistance is near the $ 1,200 level. A close above the $ 1,200 level could push the ETH price back into the positive zone. In the stated situation, it could revisit the $ 1,300 level.

Technical Indicators

Hourly MACD – The MACD for ETH / USD is gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH / USD is currently below the 50 level with a bearish angle.

Major Support Level – $ 1,000

Major Resistance Level – $ 1,200