- ETH price climbed further higher and tested 0 before correcting lower against the US Dollar.
- The price started a downside correction and traded below the 0 and 0 supports.
- There is a major bullish trend line forming with support near 2 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the 0 support area to avoid an extended downside correction.
Ethereum price climbed towards the 0 level before correcting lower versus the US Dollar and bitcoin. ETH is likely to find support near the 0, 4 and 0 levels in the near term.
Ethereum Price Analysis
After testing the 0 support, Ethereum price started a fresh increase above 0 against the US Dollar. The ETH/USD pair broke the 0 and 5 resistance levels. It traded to a new 2019 high close to the 0 level and recently started a downside correction. There was a break below the 5 and 0 support levels. It seems like the price is struggling to stay above the 0 and 5 levels. Sellers pushed the price below the 50% Fib retracement level of the recent wave from the 0 low to 0 swing high.
The price even broke the 0 support area and spiked below the 61.8% Fib retracement level of the recent wave from the 0 low to 0 swing high. However, the 0-252 support area is currently acting as a strong barrier for sellers. Moreover, there is a major bullish trend line forming with support near 2 on the hourly chart of ETH/USD. Therefore, the pair is likely to find strong bids near the 0 support area. If there is a downside break, the next key support is near the 0 level, where bulls are likely to protect losses.
The next key support below the 0 level is near 1. It coincides with the 1.236 Fib extension level of the recent wave from the 0 low to 0 swing high. More importantly, the 100 hourly simple moving average is also positioned near the 0 zone. Therefore, a break below the 0 level could trigger a nasty downside correction towards 0 or 0.
Looking at the chart, Ethereum price seems to be correcting gains from the 0 swing low. It might continue to struggle, but it is likely to bounce back from 0 or 0. On the upside, a proper close above the 0 barrier is needed for a fresh increase in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD slowly moved down and it is currently just below the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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