Ethereum Forecast: Ether Price Bear or Bottom?

Ether price is under pressure below $1,000 against the US dollar. Ethereum grew recently in terms of transactions performed, but ETH/USD seems to facing bearish pressure along with other cryptocurrencies such as bitcoin and ripple.

In a major even today, South Korea’s Financial Services Commission announced new laws and regulations for trading in cryptocurrencies such as bitcoin, Ether, ripple, litecoin and others. They forbidden anonymous bank accounts for bitcoin transactions and trading. It ignited a minor selling pressure on BTC and ETH.

ETH/USD to decline further?

Key Points

• Ethereum’s Ether is facing a major hurdle and is in a declining mode below $1,000.
• There is a monster bearish trend line forming with resistance at $1,000 on the 4-hours chart of ETH/USD.
• The pair has to break and settle above $1,000 and the 100 SMA to gain upside momentum.

Looking at the 4-hours chart of ETH/USD, there is clear downtrend forming and the pair is placed well below the $1,000 pivot (data feed by bitfinex).

On the upside, there is a monster bearish trend line forming with resistance at $1,000 on the same chart. The trend line resistance is positioned around the 150 simple moving average.

Therefore, a break above the $1,000 level and the 150 SMA is needed to avoid further declines. Above $1,000, the next major hurdle is at $1,140 and the 100 SMA. If Ether fails to break the trend line resistance at $1,000, there is a risk of more declines in the near term. The next major support is at $774, which is the last swing low.

The current price action is positive, but ETH/USD has to overcome selling pressure near $980 and $1,000 to move back in the bullish zone.

Bitcoin Ripple in Red following South Korean ban

The largest cryptocurrency, bitcoin faced an increase in selling pressure following the announcement of anonymous trading ban in South Korea. However, this should be taken in a positive sense since they want proper regulations in place to avoid money laundering.

Therefore, in the short term, it could benefit traders of digital currencies. The third largest cryptocurrency, ripple declined towards $1.20. XRP/USD must stay above the $1.00 handle to avoid further declines.

The overall market sentiment is bearish, but it would be interesting to see how the next few sessions trade.

Be safe traders and do not overtrade.