Ethereum Price Technical Analysis – ETH/USD Breaks Down

Ethereum Price Technical Analysis ETH USD

Key Highlights

  • 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.

Ethereum Price Technical Analysis ETH USD

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

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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