- ETH price declined heavily below the key 0 support area against the US Dollar.
- The price traded close to the 0 support level and it is currently consolidating losses.
- There is a short term bearish trend line forming with resistance near 4 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher in the near term, but it is likely to struggle near the 2 and 5 resistances.
Ethereum price started consolidating losses after a sharp dip versus the US Dollar and bitcoin. ETH price might correct higher towards 5 in the coming sessions.
Ethereum Price Analysis
Yesterday, we saw a massive drop in bitcoin, Ethereum, ripple and other major altcoins against the US Dollar. ETH/USD declined heavily below the key 0 support area and it even broke the 5 support. Moreover, there was a close below the 5 level and the 100 hourly simple moving average. The price traded close to the 2 level and recently started consolidating losses.
It corrected above the 0 level plus the 23.6% Fib retracement level of the recent decline from the 0 high to 2 swing low. However, the upward move was capped by the 5-276 area. Moreover, there is a short term bearish trend line forming with resistance near 4 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent decline from the 0 high to 2 swing low is also acting as a resistance.
The current price action suggests that the price is forming a support base for a short term correction above 5. If it clears the trend line, the next stop for the bulls could be near the 0-282 zone. The 61.8% Fib retracement level of the recent decline from the 0 high to 2 swing low is also likely to act as a resistance. To start a fresh increase, the price must settle above the 5 resistance.
Conversely, if there is no upside break above 5 or 0, the price could extend losses. An initial support is near the 2 level, below which the price is likely to break the 0 support level. The next major support is near the 0 level.
Looking at the chart, Ethereum price seems to be consolidating losses above 2 and it might correct higher. Having said that, the price is likely to face a strong resistance near the 0 or 5 level in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently placed in the bullish zone.
Hourly RSI – The RSI for ETH/USD is slowly moving higher, but it is still well below the 50 level.
Major Support Level – 2
Major Resistance Level – 0
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