- Ethereum price was decimated yesterday, and as forecasted it moved down further to test the $3.50 level.
- There is now a bearish formed on the 2-hours chart of Ethereum price (data feed via Kraken), which may act as a sell zone.
- The price recently found resistance near the 100 simple moving average (H2 chart, Kraken) and traded down close to our yesterday’s sell target.
Ethereum price after struggling to close above the $6.0 area, failed. It looks like forming a downtrend pattern and may continue to move down.
Ethereum Price – Sell Near Trend Line?
Ethereum price failed to move back higher, and once the price broke $4.0 level, sellers gained control and took the price towards the $3.50 levels. The broken trend line and support area on the 2-hours chart (data feed via Kraken) played well and acted as a sell zone. The price moved down after testing the broken support area to test out sell target of $3.50.
Now, there is a bearish formed on the 2-hours chart (data feed via Kraken), which can be considered as a sell area in the near term. If the price moves or corrects higher from the current levels, then sellers may take a stand near the highlighted trend line and resistance area. The price is well below the 100 simple moving average (2-hours chart, Kraken), which is a sign that there is a lot of bearish pressure at present.
On the upside along with the highlighted trend line and resistance area, the 23.6% Fib retracement level of the last drop from the $5.960 high to $3.49 low may act as a major barrier for buyers and a sell zone for sellers.
Hourly MACD – The MACD is almost flat, suggesting a consolidation phase in the short term.
Hourly RSI – The RSI is well below the 50 level, which is a sign that sellers are in charge.
Intraday Support Level – $3.50
Intraday Resistance Level – $4.15-20
Charts courtesy of Kraken via Trading View