Ethereum is down close to 10% and it broke the key 5 support area against the US Dollar. ETH price might continue to slide, but the 0 and 5 levels are likely to provide support.
Ethereum is declining heavily and it recently broke the 5 and 0 support levels against the US Dollar.
The price is now trading near the 5 level, with key supports near the 0 area.
There was a break below a major descending channel with support at 3 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also sliding and it traded below the ,250 support area.
Ethereum Price Turns Red
Yesterday, we saw a few bearish signs for Ethereum after it broke the 5 support against the US Dollar. As a result, there was a sharp decline in ETH price below the 5 support area and the 100 hourly simple moving average.
The decline was such that the price declined below the 0 and 8 support levels. Moreover, there was a break below a major descending channel with support at 3 on the hourly chart of ETH/USD.
Ethereum Price
It opened the doors for more losses below 5. Ethereum is down close to 10% and it traded close to the 5 level. A new weekly low is formed near 6 and the price is currently consolidating losses.
An initial resistance on the upside is near the 2 level. It coincides with the 23.6% Fib retracement level of the recent drop from the 4 high to 6 low. Above 2, there are a couple of important hurdles near the 8 and 0 levels.
The main resistance is now near the 0 level since it is close to the 50% Fib retracement level of the recent drop from the 4 high to 6 low. Therefore, the price must climb above the 8 and 0 resistance levels to start a fresh increase in the near term.
More Losses?
On the downside, an initial support is seen near the 5 area. The first major support is near the 0 area, where Ethereum bulls are likely to emerge.
If there are more losses below the 0 support, the next target for the bears could be 0 in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining strength in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level, with a bearish angle.
Major Support Level – 0
Major Resistance Level – 0
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