- Ethereum price weakened intraday against the US Dollar, as the ETH sellers stepped in and took the price down.
- Yesterday’s highlighted a contracting triangle pattern on the hourly chart (data feed via Kraken) of ETH/USD was broken during the downside move.
- The support area of $7.80-$8.00 may now act as a resistance area in the short term.
Ethereum price dived sharply during the past two sessions. ETH/USD broke a major support, which may now act as a sell zone.
Ethereum Price – More losses likely?
Ethereum price ETH failed to move higher during the past couple of sessions against the US Dollar and traded lower. Yesterday, I highlighted contracting triangle pattern on the hourly chart (data feed via Kraken) of ETH/USD, and was looking for a break. The price instead of moving higher, moved down and broke a major support area of $8.00-$7.80.
The price traded as low as $7.26, and attempted a recovery once. However, ETH found offers near the 23.6% Fib retracement level of the last drop from the $8.55 high to $7.26 low. There are chances of ETH/USD moving down and if buyers fail to defend the recent low of $7.26, then a test of $7.00 is possible. The most important point to note here is that the $8.00-$7.80 may now act as a monster resistance hurdle for gains in the near term.
As long as the price is below the stated resistance area, it remains at a risk of more losses. One may even consider selling near it with a stop of an hourly close above the 100 simple moving average.
Hourly MACD – The MACD looks like may change the slope to the bullish zone, which may ignite a minor correction towards $7.60-80.
Hourly RSI – The RSI is below the 50 level, which is a bearish sign in the short term.
Intraday Support Level – $7.25
Intraday Resistance Level – $8.00
Charts courtesy of Kraken via Trading View