Ethereum Protects $1,200 with Blood, Will This Region Hold?
- ETH price holds above $1,200 as bulls don’t want to let go of a price below key support
- Price continues to trade below 50 and 200 Exponential Moving Average (EMA) on the daily timeframe.
- ETH price bounced on the four-hourly chart after a bullish divergence appeared.
The price of Ethereum (ETH) has shown less bullish sentiment after its much anticipated “Ethereum Merge.” Ethereum saw its price plummet against tether (USDT) following the Federal Open Market Committee news (FOMC). The Federal Reserve raised its target interest rate by 75 bps, negatively affecting the price of ETH. (Data from Binance)
Ethereum (ETH) Price Analysis On The Weekly Chart
The price of ETH continues to struggle to keep its head afloat after seeing the weekly candle closing bearish, with the new week looking more bearish ahead of the expected FOMC meeting.
ETH price tried showing some relief bounce ahead of the new week as price moved to a region of $1,370, but this bounce was cut short as the news of an increased rate hike harmed the price seeing the price of ETH to a weekly low of $1,250 before bouncing off that region as price reclaimed $1,300.
The price of ETH needs to move to a high of $1,500 to remain safe from falling lower to its crucial support. If the price of ETH continues with this structure, we could see the price of ETH breaking the support of $1,200 and going lower to a region of $1,024, where there is more demand for ETH price.
The price of ETH is currently faced with resistance to breaking above $1,324; If ETH fails to break and hold above this support zone, we could see the price going lower to its $1,200 key support and lower if this support fails to hold off sell orders.
Weekly resistance for the price of ETH – $1,324.
Weekly support for the price of ETH – $1,200.
Price Analysis Of ETH On The Four-Hourly (4H) Chart
Four-Hourly ETH Price Chart | Source: ETHUSDT On Tradingview.com
The 4H timeframe for ETH prices continues to move in range as price retested a low of $1,250; the price of ETH bounced from this region after forming a bullish divergence as price rallied to a high of $1,320 before facing resistance to breaking higher.
The price of ETH needs to reclaim $1,400 for a chance to trend higher.
On the 4H timeframe, the price of ETH is currently trading at $1,310, just below the 50 and 200 Exponential Moving Average (EMA), acting as resistance for ETH price. The price of $1,400 and $1,540 corresponds to the resistance at 50 and 200 EMA for the price of ETH. The price of ETH needs to reclaim 50 EMA for a chance to trend to $1,500.
The Relative Strength Index of ETH is below 50, indicating fewer buy orders.
Four-hourly resistance for the ETH price – $1,400.
Four-hourly support for the ETH price – $1,200.
Featured Image From Istock, Charts From Tradingview