- ETH price after trading towards the $52.40 level against the US Dollar failed, and moved down.
- Yesterday’s highlighted connecting bullish trend line with support at $49.90 on the hourly chart (ETH/USD, data feed via SimpleFX) was broken.
- The price traded sharply lower towards $47.40 before starting a pullback.
Ethereum price fell sharply earlier today against the US Dollar, and the ETH/USD pair broke a major support trend line at $49.90.
Ethereum Price Bearish or Correction?
Yesterday, we saw a nice bullish wave in ETH price towards $52 against the US Dollar. The price traded as high as $52.40 where it faced resistance and started trading lower. Later, the downside move was accelerated, as the price broke down, and surpassed the $49 support. It also broke the 61.8% Fib retracement level of the last wave from the $47.10 low to $52.42 high. Moreover, it cleared yesterday’s highlighted connecting bullish trend line with support at $49.90 on the hourly chart.
It opened the doors for more losses, as the price traded towards the last low of $47.10. It just managed to hold the $47.40, and started moving back higher. It recovered above the 23.6% Fib retracement level of the last decline from the $52.40 high to $47.40 low. However, the upside recovery failed near the broken trend line around $50.00. Also, the 100 hourly simple moving average along with the 61.8% Fib retracement level of the last decline from the $52.40 high to $47.40 low acted as a resistance.
The price is clearly struggling to clear the 100 hourly simple moving average and $50. So, there is a chance of it moving down once again towards the $48 level in the near term.
Hourly MACD – The MACD is extending moves in the bearish zone.
Hourly RSI – The RSI is in the bearish zone, and struggling to move higher.
Major Support Level – $48.00
Major Resistance Level – $50.50
Charts courtesy – SimpleFX