- Ethereum price after trading as low as $7.36 corrected higher, but failed to break a major resistance area of $9.00.
- There is a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which acted as a barrier for an upside break.
- As long as ETH is below the trend line resistance, there is a chance of a downside move back towards $7.50.
Ethereum price correction phase is likely over. It looks like ETH/USD is setting up for another decline back towards the last low of $7.36.
Ethereum Price Remains a Sell?
Ethereum price ETH continued to face selling pressure, as it attempted a corrective rally against the US Dollar but failed to gain momentum. ETH/USD traded higher towards the $9.00 levels, where it found a bearish trend line on the hourly chart (data feed via Kraken) that perfectly acted as a hurdle for the bulls. There was a bearish candle formed as well after a failure to break the trend line.
Ether price also failed just around the 61.8% retracement level of the last drop from the $10.05 high to $7.36 low. Currently, the price is moving down and the last two candles are bearish, pointing towards more losses in the near term. So, one may consider selling Ethereum in the short term with a stop above the trend line resistance area, and a target of the $7.80-$7.50.
The 100 hourly simple moving average is positioned above the trend line resistance, which may also act as a resistance for the bulls if they attempt a break of trend line.
Hourly MACD – The MACD is placed in the bearish slope, which is not a good sign for the ETH bulls in the near term.
Hourly RSI – The RSI is also below the 50 level, calling for more declines.
Intraday Support Level – $7.80
Intraday Resistance Level – $9.00
Charts courtesy of Kraken via Trading View