Ethereum is down close to 15% and it broke the key 5 support against the US Dollar. ETH price remains at a risk of more losses below the 0 and 5 support levels.
Ethereum is trading in a nasty downtrend below the 0 support area against the US Dollar.
The price even spiked below the 0 handle and it might continue to move down.
There is a key declining channel forming with resistance near 5 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is down close to 8% and it tested the ,000 support area.
Ethereum Price Turns Red
In yesterday’s weekly forecast, we discussed a crucial breakdown pattern in Ethereum near 5 and 0 against the US Dollar. ETH price failed to recover and climb above the 5 resistance, resulting in a sharp decline.
The bears took control and the price nosedived close to 15%. There was a break below the key 5 support area and the 100 hourly simple moving average. Moreover, the bears were able to push the price below the 0 handle.
A new monthly low is formed near 6 and the price is currently consolidating losses. Ethereum is testing the 23.6% Fib retracement level of the recent decline from the 2 high to 6 low.
There is also a key declining channel forming with resistance near 5 on the hourly chart of ETH/USD. If the pair fails to recover above the channel resistance and 8, there are chances of more losses.
Ethereum Price
An initial support is near the 0 and 5 levels. A successful downside break below the 6 low could open the doors for a test of the main 5 support, where the bulls are likely to take a stand.
Chances of a Recovery
If Ethereum manages to recover above the channel resistance and 8, it may perhaps start a decent short term recovery. The next resistance is seen near the 2 and 5 levels.
The 50% Fib retracement level of the recent decline from the 2 high to 6 low is also near the 5 level to act as a strong resistance. Therefore, the bulls are likely to face a lot of hurdles near the 2 and 5 levels if there is an upside correction in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly reducing its bearish slope, but there are still many negative signs.
Hourly RSI – The RSI for ETH/USD is currently well below the 40 level.
Major Support Level – 5
Major Resistance Level – 2
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