- Ethereum price dived sharply against the US Dollar, and one of the main reasons could be Ethereum classic price surge.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD acted as a perfect barrier in pushing the price down.
- There was a heavy bearish pressure noted on ETH/USD, which could stay here for some time.
Ethereum price registered heavy losses and even closed below the $12.00 handle against the USD. Can the price recover moving ahead?
Ethereum Price Weakness
Ethereum price ETH was under a lot of bearish pressure during the past couple of sessions against the US Dollar. It broke a few important support levels including $12.80 to post heavy losses. The ETH/USD pair even closed below the 100 and 200 hourly simple moving average, which is a strong sign of weakness.
Yesterday, I highlighted a bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD. It acted as a perfect resistance to push the pair down. The price traded as low as $11.15 where somehow it found bids and started to recover. An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the $14.29 high to $11.15 low.
However, the most important resistance is now below the trend line in the form of the 200 hourly SMA, as it also coincides with the 50% Fib retracement level of the last drop from the $14.29 high to $11.15 low. Overall, I think buyers should wait until the price recover. In the short term, one may even consider selling with a stop above the trend line resistance.
Hourly MACD – The MACD is strongly placed in the bearish zone, calling for further weakness in the short term.
Hourly RSI – The RSI is around the oversold readings, which may result in a minor correction.
Major Support Level – $11.20
Major Resistance Level – $12.40
Charts courtesy – SimpleFX