Key Highlights
- ETH price formed a short-term top near 7 and moved down against the US Dollar.
- There is a key connecting bearish trend line forming with resistance at 5 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair is currently trading around the 8-830 support area and it at risk of more declines.
Ethereum price started a new downside wave against the US Dollar and Bitcoin. ETH/USD may break the 8-830 support and decline further in the near term.
Ethereum Price Resistance
Yesterday, there was a decent upside move above 0 in ETH price against the US Dollar. However, the price failed to gain momentum and formed a short-top top around at 7. Later, a new downside wave was initiated and the price moved below the 0 support level. Moreover, there was a break below the 5 level and a close below the 100 hourly simple moving average.
The last decline was constructive and a new intraday low was formed at 8.46. At the moment, the price is correcting higher from 8. It has tested the 23.6% Fib retracement level of the last decline from the 7 high to 8 low. However, it seems like the price may not gain major traction towards the 0 level. A major resistance is around the 50% Fib retracement level of the last decline from the 7 high to 8 low at 3. Moreover, there is a key connecting bearish trend line forming with resistance at 5 on the hourly chart of ETH/USD.
Therefore, it seems like the pair may face sellers on the upside near the 0 and 0 levels if there is a correction. On the downside, the 6-828 levels are decent supports. A break below 6 could push the price towards the 0 level.
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI – The RSI is now well below the 50 level.
Major Support Level – 6
Major Resistance Level – 0
Charts courtesy – SimpleFX
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