- ETH price moved into a bearish zone and settled below the 8 and 7 supports against the US Dollar.
- The price traded towards the 2 level and it is currently consolidating losses.
- There is a crucial bearish trend line in place with resistance at 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but it is likely to find a strong selling interest near 7 and 8.
Ethereum price started a major decline against the US Dollar and bitcoin. ETH/USD is following a downtrend and it could continue to move down towards the 0 and 8 levels.
Ethereum Price Analysis
Recently, we saw a downside extension below the 0 support in ETH price against the US Dollar. The ETH/USD pair gained bearish momentum and broke the 6 and 5 support levels. It even traded below the 4 level and settled well below the 100 hourly simple moving average. A new monthly low was formed near 2 and the price is currently consolidating losses. It recovered above the 4 level and the 23.6% Fib retracement level of the recent drop from the 5 swing high to 2 swing low.
However, the previous support at 7 is acting as a solid resistance. Above 7, the 8 and 9 levels are waiting to prevent gains. There is also a crucial bearish trend line in place with resistance at 0 on the hourly chart of ETH/USD. Below the trend line, the 50% Fib retracement level of the recent drop from the 5 swing high to 2 swing low is near 9. Finally, the 100 hourly simple moving average is positioned near the 1 level.
Therefore, there are many resistances on the upside, starting with 7 and ending near 1. If the price corrects higher, it is likely to find a strong selling interest near 7 and 8. Once the current consolidation/correction pattern is complete, the price may resume its decline below 4. The next key support is positioned near the 0 level. If sellers remain in action, the price could even test the 8 level in the near term.
Looking at the chart, ETH price is trading heavily in the bearish zone below the 1 resistance. There could be short-term corrective moves, but upsides remain capped below 0 and 1. On the downside, buyers are likely to take a stand near the 0 and 8 levels in the coming sessions.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move back in the bearish zone.
Hourly RSI – The RSI for ETH/USD is slowly recovering, but it is still well below the 50 and 45 levels.
Major Support Level – 0
Major Resistance Level – 0
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