Key Highlights
- ETH price failed to stay above the 2 support and declined recently against the US Dollar.
- Yesterday’s highlighted important bullish trend line was breached with support at 2 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently under pressure below 2 and it could extend its slide in the near term.
Ethereum price broke key support levels against the US Dollar and bitcoin. ETH/USD may decline in the short term towards 8 or 6.
Ethereum Price Analysis
Yesterday, we saw a short term top near the 7 level in ETH price against the US Dollar. The ETH/USD pair started a downside correction and traded below the 5 level. Later, sellers gained traction and pushed the price below the 2 support. Moreover, there was a break below the 100 hourly simple moving average, which is currently at 2.
During the drop, the price moved below the 50% Fib retracement level of the last wave from the 6 low to 7 swing high. More importantly, yesterday’s highlighted important bullish trend line was breached with support at 2 on the hourly chart of ETH/USD. The pair is currently consolidating near the 0 level with a bearish angle. An immediate support is the 61.8% Fib retracement level of the last wave from the 6 low to 7 swing high and 0. Below 0, the price could extend the decline towards the 8 or 6 levels. On the upside, there is a connecting bearish trend line formed with resistance at 2.
Looking at the chart, ETH price could face a strong resistance near the trend line, 2, and the 100 hourly SMA. Therefore, a break above 2 is needed for buyers to regain control in the short term. The next resistance on the upside is near the 5 level, followed by 7.
Hourly MACD – The MACD is about to move into the bearish zone.
Hourly RSI – The RSI is currently near the 40 level.
Major Support Level – 8
Major Resistance Level – 2
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