- Ethereum price continued the recent downward trend and created a new weekly low of $7.11 vs the US Dollar.
- There is a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which represents a significant resistance.
- As long as the price is below the trend line resistance area it remains at a risk of more losses.
Ethereum price faced offers during the recent recover attempt. It looks like ETH/USD is poised for a test of $7.00 in the short term.
Ethereum Price – Trend Line Resistance
Ethereum price ETH continued its downtrend and moved further down. Yesterday, there was an attempt to correct higher, but a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD prevented the upside move and pushed the price down once again. The highlighted trend line resistance holds a lot of importance, as it acted as a barrier for the ETH bulls on many occasions.
An initial resistance on the upside lies at the 23.6% Fib retracement level of the last drop from the $8.55 high to $7.116 low. We need to keep a close eye on the trend line and resistance area. A break and close above it could take the price towards the next resistance area, which is at the 100 hourly simple moving average, coinciding with the 50% Fib retracement level of the last drop from the $8.55 high to $7.116 low.
One may consider selling rallies as long as the price is below the trend line resistance with a stop above it, and look for a test of the $7.00 support area.
Hourly MACD – The MACD may be positioned to move in the bearish zone, which is a bearish sign.
Hourly RSI – The RSI is just around the 50 level, calling for the next move.
Intraday Support Level – $7.11
Intraday Resistance Level – $7.50
Charts courtesy of Kraken via Trading View