Key Highlights
- ETH price is under a lot of pressure as it broke the 0 and 5 supports against the US Dollar.
- There is a major bearish trend line in place with resistance at 2 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair traded as low as 8 and it is currently correcting higher towards the 5-290 resistance.
Ethereum price is under pressure against the US Dollar and bitcoin. ETH/USD broke key supports at 5, opening the doors for more losses.
Ethereum Price Decline
There was a sharp bearish reaction from the 7 swing high in ETH against the US Dollar. The ETH/USD pair started a crucial downside move and broke the 2 and 0 support levels. More importantly, there was a break and close below the 5 support and the 100 hourly simple moving average. The price even broke the 0 level to move into a bearish zone.
A low was formed at 8.18 before the price started an upside correction. An initial resistance is near the 23.6% Fib retracement level of the last drop from the 7 high to 8 low. However, there is a strong barrier near the 8-270 zone. There is also a major bearish trend line in place with resistance at 2 on the hourly chart of ETH/USD. If there is a break above the trend line, the next resistance is near the 7 level. It coincides with the 50% Fib retracement level of the last drop from the 7 high to 8 low. Therefore, if the price continues to move higher, it could face sellers near the 4-287 barrier.
Looking at the chart, ETH price has moved into a bearish zone below 5. On the downside, a break below the recent low of 8 will most likely clear the path for more losses towards 5.
Hourly MACD – The MACD is moving in the bullish zone.
Hourly RSI – The RSI is currently well below the 50 level.
Major Support Level – 8
Major Resistance Level – 4
The post Ethereum Price Analysis: ETH/USD Turned Bearish Below 5-290 appeared first on NewsBTC.