- ETH price is slowly moving down and recently broke the 0 support area against the US Dollar.
- The price could soon test the 2 or 0 level before it starts a fresh increase.
- Yesterday’s highlighted key bearish trend line is still active with resistance near 9 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is still trading in a positive zone as long as there is no close below the 0 support.
Ethereum price is in a corrective decrease versus the US Dollar, while bitcoin is consolidating. ETH price might extend its decline to 2 before it could climb again.
Ethereum Price Analysis
After forming a short term top near 6, ETH price started a downside correction against the US Dollar. It broke the 0 support level and the 100 hourly simple moving average to enter a negative zone. Moreover, the recent decline in bitcoin pushed Ethereum below the 8 level. The decline was such that the price tested the 5 support level and it is currently consolidating losses.
It corrected above the 6 level plus 23.6% Fib retracement level of the last drop from the 6 high to 5 swing low. However, the previous support area near the 0 level is acting as a resistance. Besides, the 100 hourly SMA is also preventing gains near 9. More importantly, yesterday’s highlighted key bearish trend line is still active with resistance near 9 on the hourly chart of ETH/USD.
Above the trend line, the next key resistance is near the 0 level. It coincides with the 50% Fib retracement level of the last drop from the 6 high to 5 swing low. If there is an upside break above the trend line, the 100 hourly SMA, and 0, then the price could start a fresh increase. The next key resistance area is near the 5 level, above which the price could accelerate higher.
On the downside, there is a decent support forming near the 5 level. However, it seems like there could be a downside spike before the price starts a fresh increase above the 0 level.
Looking at the chart, Ethereum price is clearly grinding lower below the 0 level. It seems like the price could test the 2 level before it attempts a decent upward move. Any further losses may perhaps push the price towards the key 0 support level. Overall, the price is likely to complete its correction near 2 or 0 before it could rise again.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is showing a few bearish signs.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level, with a bearish angle.
Major Support Level – 2
Major Resistance Level – 0
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