Ethereum is down around 4% from the 8 high and tested the 0 support against the US Dollar.
The price is currently consolidating above the 0 support, with a few bearish signs.
There is a connecting bearish trend line forming with resistance near 2 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin failed to stay above ,300 and it is now trading near the ,240 support area.
Ethereum price is facing an increase in selling versus the US Dollar due to a steady decline in bitcoin. ETH price could dive below the 8 level, if bitcoin slides below ,200.
Ethereum Price Analysis
After a strong upward move above 5, Ethereum price faced resistance near the 8 zone against the US Dollar. ETH price topped near the 8 level and recently corrected below 5.
Moreover, there was a break below the 2 support, plus the 61.8% Fib retracement level of the latest rally from the 7 low to 8 high. The price tested the 0 support and the 100 hourly simple moving average.
It seems like Ethereum is currently consolidating near 0 and the 100 hourly simple moving average. An initial resistance is near the 2 level. Besides, the 23.6% Fib retracement level of the recent decline from the 8 high to 0 low is also near 2.
More importantly, there is a connecting bearish trend line forming with resistance near 2 on the hourly chart of ETH/USD. Therefore, a clear break above the 2 resistance might start a strong increase towards the 5 and 8 resistance levels.
An intermediate resistance could be 4 or the 50% Fib retracement level of the recent decline from the 8 high to 0 low.
Conversely, Ethereum might struggle to gain momentum above the 2 and 3 levels. In the mentioned bearish case, the price could struggle to stay above 0 and the 100 hourly SMA.
If there is a close below 0 and the 100 hourly SMA, the bears are likely to gain traction and the price may perhaps slide towards the 5 support area.
Ethereum Price
Looking at the chart, Ethereum price is back to the main 0 support area. If bitcoin slides below the ,200 support area, there is a risk of a sharp decline in ETH in the near term. If not, it might start a fresh increase towards 5 and 8 in the coming sessions.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently moving higher towards the 50 level.
Major Support Level – 0
Major Resistance Level – 2 The post appeared first on NewsBTC.
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