Key Highlights
- ETH price declined heavily after it broke the 0 and 0 supports against the US Dollar.
- There is a short term contracting triangle formed with resistance at 8 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but upsides are likely to be capped near 0 or 5.
Ethereum price declined heavily against the US Dollar and bitcoin. ETH/USD tested the 5 level and it remains at a risk of more losses.
Ethereum Price Analysis
There was a nasty decline in ETH price below the 0 support area against the US Dollar. Bitcoin price tumbled heavily, which increased selling pressure and pushed the ETH/USD pair below the 0 and 0 levels. The price traded to a new monthly low at 5 and it is currently well below the 100 hourly simple moving average. At the moment, the price is consolidating losses above the 5 level with a bearish angle.
It recovered above the 23.6% Fib retracement level of the recent drop from the 5 high to 5 low. However, the upside move faced a strong resistance near the 0 level. More importantly, there is a short term contracting triangle formed with resistance at 8 on the hourly chart of ETH/USD. The pair may continue to move in a range below 0 before it makes the next move. If there is a downside break below 0, the price could trade below the 5 low. The next major support is close to the 0 level. On the other hand, a break above 0 is likely to face sellers near 5. It represents the 50% Fib retracement level of the recent drop from the 5 high to 5 low.
Looking at the chart, ETH price remains at a risk of more losses below 0 and 5. Selling rallies close to 0 or 5 can be considered as long as there is no close above 0.
Hourly MACD – The MACD is slightly in the bullish zone.
Hourly RSI – The RSI is currently near the 30 level.
Major Support Level – 5
Major Resistance Level – 0
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