- ETH price after a minor rise yesterday towards 10.50 found sellers against the US Dollar, and moved down.
- Yesterday’s highlighted a few bearish trend lines formed on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a perfect resistance.
- The price may continue to move lower towards $10.10 as the bearish pressure is intact.
Ethereum price corrected and moved down once again versus the US Dollar. Yesterday’s trend line acted as a perfect resistance for ETH/USD.
Ethereum Price Downside Move
ETH price attempt to recover the ground failed, as it moved down once again versus the US Dollar. The bearish pressure on the ETH/USD pair was intact, which disabled the buyers to take the price higher. There was a move above the 38.2% Fib retracement level of the decline from the $11.09 high to $10.107 low, but there was no increase in the bullish momentum.
The upside move found resistance near a crucial juncture. Yesterday, I highlighted a few bearish trend lines formed on the hourly chart (data feed via SimpleFX) of ETH/USD. The first trend line acted as a perfect barrier and prevented an upside move. Moreover, the failure was also around the 50% Fib retracement level of the decline from the $11.09 high to $10.107 low. The price attempted to break the trend line resistance on more than two occasions, but failed. As a result, there was a downside move, taking the price back below the $10.40 level.
It looks like the price may continue to trade lower. And, if the momentum is there, the price may even test the last swing low of $10.10. Let us see if the bulls can then defend the stated support or not.
Hourly MACD – The MACD is currently in the bearish slope, but with no increase in the momentum.
Hourly RSI – The RSI is well below the 50 level, signaling a bearish bias.
Major Support Level – $10.10
Major Resistance Level – $10.50
Charts courtesy – SimpleFX