Ethereum started a sharp decline from the 0 resistance, similar to bitcoin from ,200. ETH declined towards 0, but it is likely to find strong bids near 8.
Ether price was rejected near the 0 area and it declined below 5 against the US Dollar.
Bitcoin price is down more than 5% and it is now trading near the ,500 resistance.
There was a break below a major bullish trend line with support near 2 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is trading above a couple of important supports near 8 and 2.
Ethereum Starts Corrective Decrease
This past week, we saw a strong rise in Ethereum above the 5 and 0 resistance levels against the US Dollar. ETH price even surpassed the 5 resistance and traded close to the 0 zone.
However, the price faced a strong selling interest near the 8-0 resistance zone. A high was formed near 9 and the price started a solid downside correction.
The price traded below a couple of important supports near the 2 and 0 levels. Moreover, there was a break below a major bullish trend line with support near 2 on the hourly chart of ETH/USD.
Ethereum Price
Finally, Ethereum price settled below the 0 level and the 100 hourly simple moving average. It opened the doors for more losses and the price broke the 5 support. A low is formed near 2 and the price is currently correcting higher.
An initial resistance is near the 6 level. Besides, the 23.6% Fib retracement level of the recent decline from the 9 high to 2 low is also near 5.
The first key resistance is near the 8 level and the 100 hourly SMA. The main resistance is near the 0 level since it is close to the 50% Fib retracement level of the recent decline from the 9 high to 2 low.
Therefore, Ethereum needs to climb back above the 8 and 0 levels to resume its upward move towards 0 and 5.
Dips In ETH Remain Supported
On the downside, there are a couple of key supports near 2 and 8. If ETH fails to stay above the 8 support, there is a risk of a larger downside correction.
The main support is near the 2 level, below which Ethereum is likely to turn bearish and decline towards 0 in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – 8
Major Resistance Level – 0 The post appeared first on NewsBTC.
NewsBTC