Ethereum started a strong decline after it failed to surpass 0 against the US Dollar. ETH price declined over 6% and it is now trading near the 0 level.
- Ethereum started a strong decline after it failed to clear the 0 and 2 resistance levels.
- The price broke the key 5 support and settled below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but it is likely to face resistance near 5 and 0.
Ethereum Price Broke Key Support
After many failures, bitcoin and Ethereum declined below the ,000 and 5 support levels. ETH price gained bearish momentum below the 0 level and it settled well below the 100 hourly simple moving average.
The bears were able to push the price below the 5 support level. Ether price even spiked below the 0 support and traded as low as 1. It is currently correcting higher and trading above the 5 level.
An initial resistance is near the 2 and 5 levels. The 23.6% Fib retracement level of the recent decline from the 5 swing high to 1 low is also near the 4 level. The first major resistance on the upside is near the 5 level (the recent breakdown zone).
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the 5 swing high to 1 low is also near the 8 level. Moreover, there is a key bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD.
Therefore, ether price is likely to face a strong selling interest if it recovers above 5 and climbs higher towards the 5 and 0 level in the near term.
More Losses in ETH?
If ethereum fails to clear the 5 and 5 resistance levels, it could continue to move down. An initial support is near the 2 and 0 levels.
A downside break below the 0 support zone may perhaps spark more losses towards the 5 level. The next major support is near the 0 zone, where the bulls are likely to take a stand.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is showing negative signs in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 40 level.
Major Support Level – 0
Major Resistance Level – 5