Ethereum started a fresh decline from the 5 resistance against the US Dollar. ETH price is currently correcting higher, but upsides are likely to remain capped near 8 and 0.
- ETH price is facing a strong resistance near 0 and the 100 simple moving average (4-hours) against the US Dollar.
- The bears are likely to remain in control as long as the price is below 0.
- There is a key connecting bearish trend line forming with resistance near 0 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down towards the 5 and 0 levels in the near term.
Ethereum Price Could Struggle Near 0
This past week, Ethereum extended its decline below the 0 and 8 support levels against the US Dollar. ETH price even settled below the 6 level and the 100 simple moving average (4-hours).
Ether traded as low as 0 and it is currently correcting higher. It broke the 2 level, plus the 23.6% Fib retracement level of the recent decline from the 5 high to 0 swing low.
However, the price facing a strong resistance near 0 and the 100 simple moving average (4-hours). There is also a key connecting bearish trend line forming with resistance near 0 on the 4-hours chart of ETH/USD.
Ethereum price trades below 5. Source: TradingView.com
The 100 SMA is close to the 50% Fib retracement level of the recent decline from the 5 high to 0 swing low. Therefore, an upside break above the 6 and 0 levels won’t be easy. If the bulls succeed, the price could move into a bullish zone above 0.
The next major resistance is near the 5 level, above which the bulls are likely to aim a larger upward move towards the 5 and 2 levels in the coming days.
More Losses in ETH?
If Ethereum fails to continue higher above the 6 and 0 resistance levels, there are chances of more losses. The first major support is near the 0 level.
The next major support is near the 4 level, below which the bears are likely to target a strong bearish break below the 0 support level.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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