- ETH price tested the 9-120 resistance area and failed to gain strength against the US Dollar.
- There is a short term declining channel formed with resistance near 8 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently at a risk of more losses as long as it is trading below the 8 and 0 hurdles.
Ethereum price failed to stay in the positive zone against the US Dollar and bitcoin. ETH/USD trimmed most its gains and it is likely heading towards the 4 support level.
Ethereum Price Analysis
Yesterday, we saw a nice upward move above the 4 and 5 resistances in ETH price against the US Dollar. The ETH/USD pair even spiked above the 8 resistance and the 100 hourly simple moving average. However, it failed to break the 0 resistance area. There was also no close above the 61.8% Fib retracement level of the last downside move from the 5 high to 1 swing low. The price started a fresh decline and traded below the 8 level and the 100 hourly SMA.
Moreover, there was a break below the 50% Fib retracement level of the recent wave from the 1 low to 0 swing high. At the outset, there is a short term declining channel formed with resistance near 8 on the hourly chart of ETH/USD. The channel support is at 4, where buyers are likely to emerge. Above 4, the 61.8% Fib retracement level of the recent wave from the 1 low to 0 swing high is a decent support. Below 4, the price could dip towards the 2 and 1 levels.
Looking at the chart, ETH price is facing a major resistance near the channel, 8, and the 100 hourly simple moving average. A successful break and close above 0 is needed for more gains towards 4 and 7. If buyers fail, the price may continue to move down towards 2.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently placed in the bearish zone, with negative signs.
Hourly RSI – The RSI for ETH/USD is moving lower towards the 35 and 30 levels.
Major Support Level – 4
Major Resistance Level – 8
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