- ETH price made another attempt to break the $8.40 resistance area against the US Dollar, but failed.
- There is a bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is currently holding the downside move.
- The price need to stay above the $7.80 support area, else there can be more declines.
Ethereum price remained below the $8.40 resistance area against the US dollar, and ETH/USD is currently testing the $7.80-90 support area.
Ethereum Price Support
There was an upside move in ETH price against the US Dollar to trade near the $8.40 resistance area. The same area acted as a resistance earlier, and this time too it managed to prevent an upside move. The price failed to move above the $8.40 resistance area and started a downside move. The ETH/USD pair already moved below the 23.6% Fib retracement level of the last wave from the $6.87 low to $8.40 high.
However, the pair is currently trading near a major support area at $7.90-80. The stated area coincides with a bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD. Moreover, the 100 hourly simple moving average is also around the same area. So, it holds a lot of importance, and it won’t be easy for the ETH sellers to break it. If at all they manage to break it, there can be more declines.
In that situation, the 50% Fib retracement level of the last wave from the $6.87 low to $8.40 high may be tested. If the pair bounces from the current levels, then the $8.40 level may be tested again.
Hourly MACD – The MACD is about to move from the bullish to bearish slope, which is a negative sign.
Hourly RSI – The RSI has moved below the 50 level, suggesting bearish signs.
Major Support Level – $7.90
Major Resistance Level – $8.40
Charts courtesy – SimpleFX