- ETH price remained in a minor bearish trend versus the US Dollar, and moved down slowly.
- There is a small channel pattern formed on the hourly chart (data feed via SimpleFX) of ETH/USD, acting as a catalyst for the downside move.
- If there is a minor rise, then the 100 hourly simple moving average may act as a resistance.
Ethereum price grinded lower a bit against the US Dollar, and it looks like the ETH/USD pair may continue to struggle in the short term.
Ethereum Price Resistance
ETH price started a downside move after trading as high as $11.08 against the US Dollar. Yesterday, I highlighted a bullish trend line break, which initiated a downtrend. The price during the recent downside move broke the 38.2% Fib retracement level of the wave from the $10.24 low to $11.08 high. Second, it also closed below the 100 hourly simple moving average, which means buyers failed to hold the losses.
The price is currently trading just above the 50% Fib retracement level of the wave from the $10.24 low to $11.08 high. There is also a descending channel pattern formed on the hourly chart (data feed via SimpleFX) of ETH/USD. It is slowly taking the price down. Since, the 50% Fib level is on the downside, there is a chance of a minor rise in the near term. However, the upside move may find sellers near the 100 hourly simple moving average.
Moreover, there is a bearish trend line on the same chart, which can also be considered as a major hurdle. In short, the price may continue to slowly move down in the short term, but any major losses might be limited.
Hourly MACD – The MACD is currently in the bearish zone, but slowing attempting to change the bias.
Hourly RSI – The RSI is below the 50 level, which is a negative sign for the buyers.
Major Support Level – $10.60
Major Resistance Level – $10.90
Charts courtesy – SimpleFX