- Ethereum is down more than 6% and it broke the key 0 support area against the US Dollar.
- The price tested the final bearish target near the 2 and 0 levels.
- There is a short term contracting triangle forming with resistance near 3 on the hourly chart of ETH/USD (data feed via Kraken).
- The price could correct higher, but it is likely to face sellers near 6 or 8.
Ethereum price is diving below key supports versus the US Dollar and bitcoin. ETH price could continue to move down towards 5 if it fails to stay above 0.
Ethereum Price Analysis
In the past few analyses and the weekly forecast, we discussed the chances of Ethereum declining to the 2 support against the US Dollar. ETH price did start a nasty declining in the past few sessions and broke many supports near 0.
Moreover, there was a close below the 0 level and the 100 hourly simple moving average. It opened the doors for more losses and the price tumbled below the 5 level. Finally, it spiked below the 2 support and tested the 0 area.
A new monthly low was formed near 0 and the price is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the 2 high to 0 low.
Besides, there is a short term contracting triangle forming with resistance near 3 on the hourly chart of ETH/USD. Therefore, Ethereum price could either recover above 3 or extend its decline.
On the upside, the next major resistance is near the 6 level. Additionally, the 50% Fib retracement level of the recent decline from the 2 high to 0 low is also near the 6 level.
Having said that, the price must climb above the 8 and 0 resistance levels to move back into a positive zone. If not, there is a risk of more downsides below the 0 support area.
A clear break below the 0 level will most likely open the doors for a nasty decline towards the 5 support or the 2 area in the near term.
Looking at the chart, Ethereum price is down more than 6% and it clearly dropped heavily after it broke the 0 support. Similarly, there could be another slide if the price fails to stay above the 0 support area.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly reducing its bearish slope.
Hourly RSI – The RSI for ETH/USD is currently in the oversold region, with no signs of a major recovery.
Major Support Level – 0
Major Resistance Level – 6
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