Ethereum declined below 0 before the bulls appeared near 0 against the US Dollar. ETH price is correcting higher, but it is likely to face a strong resistance near 0 and the 100 hourly SMA.
- Ethereum started an upside correction after forming a strong support at 0.
- The price is facing a strong resistance near 0 and the 100 hourly simple moving average.
- There is a short-term contracting triangle forming with resistance near 8 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could test the 0 resistance if it clears the triangle resistance zone.
Ethereum Price is Facing Hurdles
Yesterday, we saw a sharp decline in bitcoin, Ethereum, ripple and other altcoins. ETH even broke the 0 support level and settled well below the 100 hourly simple moving average.
It opened the doors for more downsides and the price even spiked below 0. Finally, ether found support near the 0 level. The bears made two attempts to clear the 0 support, but they failed. The price started a decent recovery wave above the 0 level.
There was a break above the 0 resistance level. Ether even climbed above the 23.6% Fib retracement level of the recent decline from the 3 swing high to 8 low.
Source: ETHUSD on TradingView.com
On the upside, there is a major hurdle forming near the 0 level and the 100 hourly simple moving average. There is also a short-term contracting triangle forming with resistance near 8 on the hourly chart of ETH/USD.
If there is an upside break above the triangle resistance, the price could test the 0 barrier. It is also close to the 50% Fib retracement level of the recent decline from the 3 swing high to 8 low. To move back into a positive zone, the price must clear the 0 resistance and settle above the 100 hourly SMA.
More Losses in ETH?
If ethereum fails to recover above the triangle resistance or 0, there could be a fresh decline. An initial support is near the 0 level and the triangle lower trend line.
A downside break below the triangle support could push the price below the 0 level. The main support is near the 0 level, below which there is a risk of a drop towards the 0 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently close to the 50 level.
Major Support Level – 0
Major Resistance Level – 0