Key Highlights
· ETH price failed to stay above the 5 support and declined recently against the US Dollar.
· Yesterday’s highlighted key bullish trend line was breached with support at 0 on the hourly chart of ETH/USD (data feed via Kraken).
· The pair may continue to correct lower towards the 4 or 9 support level.
Ethereum price is slowly moving in the bearish zone against the US Dollar and bitcoin. ETH/USD may accelerate the current correction towards 4 or 9.
Ethereum Price Analysis
Recently, ETH price failed to clear the 9-160 resistancezone against the US Dollar. The ETH/USD pair started a downside correction and traded below the 5 and 0 support levels. There was even a close below the 5 support and the 100 hourly simple moving average. The price also declined below the 76.4% Fib retracement level of the recent leg from the 7 low to 0 high.
More importantly, yesterday’s highlighted key bullish trend line was breached with support at 0 on the hourly chart of ETH/USD. The pair tested the 7 swing low and it is currently trading below the 100 hourly SMA. On the downside, the next support is near the 4 level. It is the 1.236 Fib extension level of the recent leg from the 7 low to 0 high. If there are more losses, the price may trade towards the 9-140 support zone. Besides, the 1.618 Fib extension level of the recent leg is also near the 9 level. On the upside, the broken support near the 0-152 zone and the 100 hourly SMA could act as a resistance.
Looking at the chart, ETH price may correct a few points higher, but it likely to face sellers near 2. If there is a bearish continuation, the price may perhaps continue to move down towards the 4 or 9 supports. Overall, selling near the 2 level may be considered in the short term for a test of 4 or 9.
Hourly MACD – The MACD for ETH/USD is now placed in the bearish zone, suggesting more declines.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level, with a bearish angle.
Major Support Level – 4
Major Resistance Level – 2
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