Key Highlights
- ETH price attempted a minor recovery against the US Dollar and Bitcoin, but failed to gain momentum.
- There are a couple of bearish trend lines formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which are acting as a resistance.
- As long as there is no break above these trend lines, there is a chance of further declines.
Ethereum price struggle to recover against the Bitcoin and the US Dollar continues. It looks like ETH/USD may decline further in the short term.
Ethereum Price Resistance
It looks like even a successful Ethereum 4th Hard fork was not able to ignite an upside move in ETH price. It struggled to retain the bullish bias against the USD and BTC, and moved down. The ETH/USD pair is once again heading towards the last swing low of $8.44, and almost tested it. There was a new weekly low to start with at $8.54 where there was some buying interest, taking the price higher.
The price is currently recovering, and trading near the 23.6% Fib retracement level of the decline from the $9.58 high to $8.54 low. It is currently acting as a resistance and stopping the upside move. However, the most important hurdle on the upside is in the form of a couple of bearish trend lines formed on the hourly chart (data feed via SimpleFX) of ETH/USD. These trend lines prevented an upside move in many occasions, and hold a lot of significance.
If there is a break above these trend lines, then there is a chance of further gains in ETH/USD in the near term. Otherwise, the price remains at a major risk of more declines back towards the $8.50 level.
Hourly MACD – The MACD is now strongly in the bearish slope, and showing any major recovery sign.
Hourly RSI – The RSI is well below the 50 level, but starting pointing north.
Major Support Level – $8.50
Major Resistance Level – $8.80
Charts courtesy – SimpleFX
