- ETH price extended declines and traded below the 1 and 0 support levels against the US Dollar.
- The price is back above the 0 level, but it remains below the key 4 resistance.
- Yesterday’s key bearish trend line is intact with resistance at 4 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair remains in a bearish zone and it may continue to move down towards 8 or 6.
Ethereum price is trading with a bearish bias against the US Dollar and bitcoin. ETH/USD is likely to extend losses below 0 as long as it is trading below the 4 resistance.
Ethereum Price Analysis
Yesterday, we saw a bearish wave below the 6 and 4 supports in ETH price against the US Dollar. Later, the ETH/USD pair corrected a few points, but the 4 level acted as a solid resistance. Finally, the price declined again and broke the 1 and 0 support levels. The price spiked below the 0 level and settled well below the 100 hourly simple moving average. A low was formed close to the 9 level and recently the price corrected above the 0 level.
It is currently trading near the 23.6% Fib retracement level of the recent decline from the 5 swing high to 9 swing low. However, there are many hurdles waiting on the upside near the 2 and 4 levels. The 2 level represents the 50% Fib retracement level of the recent decline from the 5 swing high to 9 swing low. The 4 resistance was a support earlier and now it is likely to act as a solid hurdle. Moreover, yesterday’s key bearish trend line is intact with resistance at 4 on the hourly chart of ETH/USD. Besides, the 100 hourly simple moving average is also positioned just above the 4 resistance level.
Therefore, if the price continues to move higher, it could face a strong resistance at 2 or 4. Selling rallies could be an option as long as the price is below 4 and the 100 hourly simple moving average.
Looking at the chart, ETH price is clearly trading in a bearish zone below the 4 resistance. In the short term, there could be an upside correction, but the 4 level is likely to prevent gains. On the downside, the 9-130 support area may act as a buy zone. However, a close below the 0 level will most likely trigger more losses towards the 8 or 6 level.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 40 level, with a bearish angle.
Major Support Level – 0
Major Resistance Level – 4
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