- ETH price started a downside correction after it failed to clear 5 against the US Dollar.
- The price declined below the 5 support level, but it is holding the 0 and 2 supports.
- Recently, there was a break above a declining channel with resistance at 4 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to climb higher again as long as it is trading above the 0 support area.
Ethereum price is showing signs of a correction versus the US Dollar, and remains bearish vs bitcoin. ETH price is likely to bounce back once the current correction is complete.
Ethereum Price Analysis
After struggling to surpass the 5 resistance, Ethereum price started a downside correction against the US Dollar. The ETH/USD pair traded below the 0 and 5 support levels. There was also a close below the 0 level and the 100 hourly simple moving average. Moreover, the price traded below a major bullish trend line with support near 0 on the hourly chart.
It opened the doors for more losses, but the 2 and 0 support levels remained intact. A swing low was formed near 1 and the price is currently moving higher. It surpassed the 23.6% Fib retracement level of the recent decline from the 5 high to 1 low. Moreover, there was a break above a declining channel with resistance at 4 on the hourly chart of ETH/USD.
The pair is currently testing the 6 level and the 100 hourly simple moving average. If there is a successful break above the 100 hourly simple moving average, the price could rise towards the 0 resistance. An intermediate resistance is near the 50% Fib retracement level of the recent decline from the 5 high to 1 low. A successful close above the 8 and 0 levels is likely to start a fresh increase in the near term.
On the downside, an immediate support is near the 4 level. However, the main supports are 2 and 0. If there is a close below the 0 support, the price is likely to decline further.
Looking at the chart, Ethereum price remains in a positive zone as long as it is above 0. If it fails to hold the 0 support, there could be a downside extension below the 8 and 5 supports. On the upside, the key hurdles are near 0, 5 and 0.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back in the bullish zone, with positive signs.
Hourly RSI – The RSI for ETH/USD is still below the 50 level, with a flat structure.
Major Support Level – 0
Major Resistance Level – 0
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