Ethereum is declining and it recently broke the 0 support, similar to bitcoin. ETH price is likely to continue lower below the 8 and 5 support levels in the near term.
Ether price is showing a few bearish signs below the 2 level against the US Dollar.
The bears seem to be in control and they are likely to aim a larger decline below 5.
This week’s key bearish trend line is in place with resistance near 4 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin is also sliding and it recently broke the key ,500 support area.
Ethereum Price Starts Substantial Decrease
After Ethereum failed to climb above the 0 resistance, there was a fresh decline against the US Dollar. ETH price declined steadily and broke the 5 support and the 100 hourly simple moving average.
It opened the doors for more losses and the price recently broke the 2 support. The decline was such that the bears were able to push the price below the 0 support.
A low is formed near 8 and the price is currently trading in a bearish zone. An initial resistance on the upside is near the 2 level. Besides, the 23.6% Fib retracement level of the recent decline from the 1 high to 8 low is near 1.
The main resistance for Ethereum is now near the 5 area. More importantly, this week’s key bearish trend line is in place with resistance near 4 on the hourly chart of ETH/USD.
Ethereum Price
The 50% Fib retracement level of the recent decline from the 1 high to 8 low is also close to the trend line and the 100 hourly SMA.
Therefore, a clear break above the 5 resistance area is needed to decrease the current selling pressure. The next major resistance is near 0, above which ETH might surge towards the 8 barrier. An intermediate resistance is near the 4 level.
ETH Could Decline Further
On the downside, an immediate support is near the 8 level. If ETH price fails to stay above the 8 support, it could easily decline below the 5 support in the near term.
In the mentioned case, Ethereum could revisit the 0 support area, where the bulls are likely to take a stand in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level, with a negative bias.
Major Support Level – 5
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