Key Highlights
- ETH price formed a decent support near and recovered recently against the US Dollar.
- There is a major bearish trend line formed with resistance at 7 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to face a lot of hurdles near 7, 0, $2 and 9 in the near term.
Ethereum price remains in a bearish zone versus the US Dollar and Bitcoin. ETH/USD must clear the 7 and the 2 resistance to climb towards 5.
Ethereum Price Analysis
After a sharp decline, ETH price traded close to the 0 support area against the US Dollar. The ETH/USD pair traded as low as and later started an upside correction. The price formed a decent support near the -100 zone and later climbed higher. It moved above the 0 and 5 resistance levels. There was even a break above the 23.6% Fib retracement level of the last drop from the 0 high to low.
However, upside were capped by 5 and the price remained well below the 100 simple moving average (4-hours). More importantly, there is a major bearish trend line formed with resistance at 7 on the 4-hours chart of ETH/USD. The pair is currently consolidating near the trend line and 5. Buyers need to break the 7 and then 0 resistances to climb higher. The next major hurdle is near the 8-140 zone. It coincides with the 50% Fib retracement level of the last drop from the 0 high to low.
The above chart indicates that ETH price is struggling to break the 7 and 0 resistance. If buyers continue to struggle, there is a chance of a downside break below 0. The main support is at 0 followed by the level.
4-hours MACD – The MACD is currently flat in the bearish zone.
4-hours RSI – The RSI is placed nicely above the 50 level with a neutral angle.
Major Support Level – 0
Major Resistance Level – 7
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