TA: Ethereum Corrects 20%: Why ETH Could Find Strong Support At $1,000 - SMARTNAIRA

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Sunday, 10 January 2021

TA: Ethereum Corrects 20%: Why ETH Could Find Strong Support At $1,000

Ethereum started a sharp downside correction below $1,200 against the US Dollar. ETH price is down 20%, but is approaching a crucial support at $1,000 and the 100 hourly simple moving average.

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

Ethereum Price Corrects Sharply

In the past two sessions, there was a strong downside correction in bitcoin and Ethereum below $38,000 and $1,100. ETH price failed to stay above the $1,200 support and declined heavily below $1,150.

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

The pair even broke the 50% Fib retracement level of the key upward move from the $890 swing low to $1,351 high. Ether price is down 20%, and it is approaching the $1,000 support and the 100 hourly simple moving average.

Ethereum Price

Source: ETHUSD on TradingView.com

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

If ether price fails to stay above the $1,000 support and the 100 hourly simple moving average, there a risk of a drop towards the $900 support level in the coming sessions.

Fresh Increase in ETH?

If ethereum stays above the $1,000 support and the 100 hourly simple moving average, it could start a fresh increase. An initial resistance on the upside is near the $1,180 level.

The first key resistance is near the $1,200 level. A close above the $1,200 level may possibly push ether price back into a positive zone. In the stated case, it could revisit the $1,300 level.

Technical Indicators

Hourly MACD The MACD for ETH/USD is gaining pace 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



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