Ethereum is still struggling to clear the main 0 resistance against the US Dollar. ETH could start a short term downside correction if it continues to struggle near 0.
Ethereum is currently trading in a range below the 0 and 2 resistance levels.
The price is showing a few bearish signs below the 0 pivot level.
There is a major bullish trend line forming with support near 4 on the hourly chart of ETH/USD (data feed via SimpleFX).
The pair could either rally above 0 or start a downside correction towards the 8 level.
Ethereum Price Facing Key Resistance
In the past few sessions, there were mostly bullish moves above the 0 level in Ethereum against the US Dollar. ETH price is forming a strong support base above 0, but it is also struggling to gain momentum above the 8-0 resistance area.
Recently, there was a fresh upward move from the 2 swing low. The price climbed above the 6 level, but it failed to continue above the 8-0 resistance area. A high is formed near 8 and the price is currently consolidating.
Ethereum is trading below the 23.6% Fib retracement level of the recent move from the 2 swing low to 8 high. On the downside, there is a strong support forming near the 4 and 5 levels.
More importantly, there is a major bullish trend line forming with support near 4 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent move from the 2 swing low to 8 high.
Ethereum Price
On the upside, Ether buyers are facing a crucial resistance near the 0 level. A successful daily close above the 0 level is needed for a sustained upward move. The next key resistance above 0 is near 2. Any further gains could lead the price towards the 0 and 5 levels.
Downside Correction?
Ethereum is clearly facing a major hurdle near the 0 level. If the bulls continue to struggle near the 0 level, there is a risk of a bearish reaction in the near term.
A downside break below the 4 support might lead the price towards the 0 level. The first key support is near the 8 level, below which it could test the 0 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well above the 50 level.
Major Support Level – 4
Major Resistance Level – 0
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