Ethereum started a sharp decline after it failed to stay above the 0 support against the US Dollar. ETH price is likely to bounce back as long as it is above the 6 support zone.
- Ethereum is down over 10% and it broke the 0 and 0 support levels.
- The price even traded close to the 0 support and settled below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near 8 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to resume its upward move as long as it is above 0 or 6 in the near term.
Ethereum Price Testing Key Support
After trading close to the 0 handle, Ethereum started a downside correction against the US Dollar. ETH price broke the 0 support zone to move into a short-term bearish zone.
However, the bulls lost control and ether price declined sharply below the 0 support level. The price is down over 10% and it even broke the 5 support. It traded close to the 0 support and settled below the 100 hourly simple moving average.
A low is formed near 2 and the price is currently attempting an upside correction. There was break above the 5 level, plush ether recovered above the 23.6% Fib retracement level of the recent decline from the 0 swing high to 2 low.
Ethereum price trades below 0. Source: TradingView.com
The bulls are currently struggling to gain pace above 5 and 0. There is also a key bearish trend line forming with resistance near 8 on the hourly chart of ETH/USD.
The next key resistance is near the 5 level since it is close to the 50% Fib retracement level of the recent decline from the 0 swing high to 2 low. On the downside, the price is likely to remain well bid near the 0 level. The next major support is near the 6 level, below which Ethereum could move into a bearish zone.
Fresh Increase in ETH
If Ethereum stays above the 0 support zone, it could start a fresh increase above 8 and 0. A successful break above 0 might increase chances of a push above 0.
In the mentioned case, the bulls need to gain strength above the 5 resistance. If they succeed, the price is likely to rise steadily towards 0 and 5.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back into the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – 0
Major Resistance Level – 0