Key Highlights
- ETH price did not move higher above the 1 and 3 resistances against the US Dollar.
- Yesterday’s highlighted important bearish trend line is in place with resistance at 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline sharply if there is a downside break below the 6-197 support.
Ethereum price is under pressure against the US Dollar and bitcoin. ETH/USD must stay above 6 to avoid a downside break in the near term.
Ethereum Price Analysis
During the past few hours, there were mostly range moves below 1 in ETH price against the US Dollar. The ETH/USD pair failed to move higher above the 1 and 3 resistances, and declined slowly. There was a bearish structure formed after the price failed to break the 0.65-201.00 zone. The price also failed to clear the 50% Fib retracement level of the last drop from the 4 swing high to 8 low.
More importantly, yesterday’s highlighted important bearish trend line is in place with resistance at 0 on the hourly chart of ETH/USD. The price is also trading well below the 1 pivot level and the 100 hourly simple moving average. If there is a break above the trend line, the price may struggle near 1-202. It represents the 61.8% Fib retracement level of the last drop from the 4 swing high to 8 low. A convincing close above the 1 level and the 100 hourly SMA is needed for buyers to start a decent recovery. On the downside, the 6 and 7 levels are important supports. Below these, the price may drop sharply towards the 5 level.
Looking at the chart, ETH price is clearly following a bearish structure below 1. To recover, the price must break the 0, 1 and 2 resistance levels in the near term.
Hourly MACD – The MACD is still in the bearish zone.
Hourly RSI – The RSI is showing no recovery signs below the 50 level.
Major Support Level – 7
Major Resistance Level – 1
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