Ethereum Price Key Highlights
- Ethereum’s price has been in a steady downtrend against Bitcoin, as the latter has enjoyed tremendous buying pressure in the past few weeks.
- A descending trend line can be drawn to connect the latest highs of Ethereum price action, and the Fibonacci levels on the latest swing high and low are near this falling resistance area.
Ethereum’s price might be ready to resume its selloff after pulling up to the Fibonacci retracement levels on the short-term time frames.
Confluence Around 0.002 BTC
The 0.002 BTC level looks like a prime resistance area where plenty of sell orders might be located. This is in line with the falling trend line and the 100 SMA, which has held as a dynamic resistance level in the past.
In addition, the 100 SMA is below the longer-term 200 SMA, confirming that the downtrend is set to carry on. A larger correction to the 200 SMA near the 61.8% Fibonacci level at 0.00214 BTC might also be possible if the bounce is strong.
The stochastic oscillator is already indicating overbought conditions, which means that buyers are already feeling tired and ready to let sellers take over from here. This opens the possibility of a shallow pullback, possibly until the nearby area of interest at 0.0019 BTC.
Meanwhile, the RSI is on middle ground and still seems to be on the way up, so there may be some buying pressure left for a higher retracement. Once the stochastic oscillator makes its way back down, though, more sellers could hop in and push Ethereum prices to the previous lows at 0.0018 BTC.
Stronger momentum could lead to a downside break of these lows, possibly taking Ethereum price down to as low as 0.0015 BTC. On the other hand, an unlikely upside break of the descending trend line and moving averages’ resistance past 0.0022 BTC could mark the start of a reversal.
Intraday support level – 0.00180
Intraday resistance level – 0.00215
Charts from Kraken, courtesy of TradingView