- ETH price after initiating a break yesterday at $11.30 against the US Dollar started a downtrend.
- Yesterday’s highlighted bearish trend line on the hourly chart of ETH/USD (data feed via SimpleFX) acted as a barrier at $11.20 and pushed the price down.
- The price traded sharply lower, and also broke the last swing low at $10.80.
Ethereum price declined sharply as two Bitcoin exchanges in China suspended withdrawals. ETH/USD is under heavy pressure, and may decline further.
Ethereum Price Decline Initiated
Yesterday, there were signs of a downtrend in ETH price against the US Dollar, as the price broke the $11.30 support. A downtrend was initiated, which got strength later on to break many support levels like $11.00. The most important break was below the $10.80 pivot. It means there are chances of additional losses in ETH/USD in the near term towards $10.00.
There was a bearish trend line highlighted on the hourly chart of ETH/USD (data feed via SimpleFX) yesterday at $11.20. It acted as a perfect hurdle, and pushed the price below $10.80. A new low was formed at $10.24. Later, there was a recovery initiated, but might not last long. It traded above the 23.6% Fib retracement level of the last decline from the $11.38 high to $10.24 low.
However, the upside found resistance near the 50% Fib retracement level of the last decline from the $11.38 high to $10.24 low. So, the $10.80 level, which was a support earlier now acted as a resistance. The price has already started moving down once again and traded below $10.70. If the current momentum stays intact, there are chances of more losses in ETH towards $10.20.
Hourly MACD – The MACD has moved sharply in the bearish slope.
Hourly RSI – The RSI has recovered from the oversold levels, but still below the 50 level.
Major Support Level – $10.20
Major Resistance Level – $10.80
Charts courtesy – SimpleFX