Key Highlights
- ETH price corrected lower from the 8.31 high and declined below 0-291 against the US Dollar.
- There was a break below a key bullish trend line with support at 4 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now trading near a couple of important support levels around 3 and 0.
Ethereum price is correcting lower against the US Dollar, but remains bearish vs bitcoin. ETH/USD must stay above 0-283 to bounce back in the near term.
Ethereum Price Support
Yesterday, we saw a nice upside move above the 5 level in ETH price against the US Dollar. The ETH/USD pair traded as high as 8.31 and later started a downside correction. It declined and moved below the 0 support level. Moreover, there was a break below the 38.2% Fib retracement level of the last ride from the 9 low to 8 high. There was even a break below the 5 level, but buyers appeared near 3-284.
During the decline, there was a break below a key bullish trend line with support at 4 on the hourly chart of ETH/USD. The pair tested the 50% Fib retracement level of the last ride from the 9 low to 8 high. The 3-284 zone is currently acting as a support along with the 100 hourly simple moving average. The price may decline a few more points, but the next support near 0 holds a lot of importance. Below this, the price may move into a bearish zone back towards the 9 swing low.
Looking at the chart, ETH price seems to be testing a key technical support near 3. Therefore, there are high chances of a bounce back towards the 0 and 2 levels. However, a break above the 5-298 zone is needed for more gains in the near term.
Hourly MACD – The MACD is slightly placed in the bearish zone.
Hourly RSI – The RSI is currently well below the 50 level.
Major Support Level – 0
Major Resistance Level – 5
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