Ethereum failed to clear the 5 resistance and declined below 0 against the US Dollar. ETH price is now approaching a major support zone near the 0 handle.
- Ethereum is down over 5% and it broke the 5 and 0 support levels.
- The price even settled below the 0 level and the 100 hourly simple moving average.
- There is a new bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to find a strong buying interest near the 0 and 8 support levels.
Ethereum Price Corrects 5%
After another failed attempt to gain strength above 5, Ethereum started a downside correction against the US Dollar. ETH is down over 5% and it broke the 5 and 0 support levels.
The recent decline was such that the price even settled below the 0 level and the 100 hourly simple moving average. It traded as low as 5 and it is currently recovering higher. An initial resistance is near the 5 level.
The 23.6% Fib retracement level of the recent decline from the 7 swing high to 5 low is also near the 5 level to act as a hurdle. Moreover, there is a new bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD.
Ethereum price trades below 0. Source: TradingView.com
The main resistance is now forming near the 5 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the 7 swing high to 5 low is also near the 5 level.
A successful break above the 5, 0, and 5 resistance levels is needed to start a fresh increase. In the mentioned case, the bulls are likely to push the price towards the 5 and 0 resistance levels.
Crucial Uptrend Support for ETH
If Ethereum fails to recover above 0 or 5, it could continue to move down. The first support is near the recent low at 5.
The main support is near the 0 level (the last key breakout zone) or 8. If there are more losses below 5, the price could start a major downside correction towards 0 or even 5.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level.
Major Support Level – 0
Major Resistance Level – 5