Key Highlights
- ETH price is under a lot of pressure after it broke the 0 support against the US Dollar.
- There was a break below a major contracting triangle with support at 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is under a lot of pressure and it could continue to decline towards the 0 level.
Ethereum price declined recently against the US Dollar and bitcoin. ETH/USD may perhaps continue to decline towards the 0 level in the near term.
Ethereum Price Decline
After failing near the 5 level, ETH price started a downside move against the US Dollar. The ETH/USD pair declined ad traded below the 0 and 0 support levels. There was also a close below the 0 level and the 100 hourly simple moving average. Moreover, there was a break below the 50% Fib retracement level of the last wave from the 6 low to 7 high.
More importantly, there was a break below a major contracting triangle with support at 0 on the hourly chart of ETH/USD. The pair declined towards the 0 level and found support near 2. On the downside, the next support is near the 61.8% Fib retracement level of the last wave from the 6 low to 7 high. A downside break below the 2 level could open the doors for more losses. The most important support is near 0, which is close to the 76.4% Fib retracement level of the last wave from the 6 low to 7 high. If the price corrects higher, it could find resistance near the 0 and 5 levels.
Looking at the chart, ETH price in a bearish zone and it could extend declines towards 0, 5 and 0. Below this last, it could even trade back towards the 6 level.
Hourly MACD – The MACD is moving in the bearish zone.
Hourly RSI – The RSI is currently well below the 40 and 30 levels.
Major Support Level – 0
Major Resistance Level – 5
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