- ETH price declined towards the $38 handle against the US Dollar where it found support.
- Yesterday’s highlighted two bearish trend lines are still acting as a hurdle near $42.40 on the hourly chart (ETH/USD, data feed via SimpleFX).
- The price needs to break the resistance area at $42.50 in order to gain further.
Ethereum price after a dip recovered against the US Dollar, but the ETH/USD pair is facing a major resistance near the $42.50 level.
Ethereum Price Resistance
Yesterday, we were looking for a break in ETH price against the US Dollar. The price did move down and traded below the $41 support. There was a decline towards the $38.20 level where it found support. It was a technical level coinciding with the 50% Fib retracement level of the last wave from the $30.36 low to $45.03 high. We highlighted a test of the stated fib level, and the price did test it near $38.15.
There was a close below the 100 hourly simple moving average at $40.80, pushing the price down. Later, ETH bulls appeared and pushed the price back above $39.80. A move above the 50% Fib retracement level of the last decline from the $45.09 high to $38.15 low was witnessed. However, the price failed near two bearish trend lines with resistance at $42.40 on the hourly chart (ETH/USD, data feed via SimpleFX). There was also a failure near the 61.8% Fib retracement level of the last decline from the $45.09 high to $38.15 low.
So, it looks like the price is facing a major hurdle near $42.50. There should be a break above it if buyers need to gain pace towards $44.00. Else, there can be a downside move back towards the $38.50 level.
Hourly MACD – The MACD is attempting to change the slope from bearish to bullish.
Hourly RSI – The RSI is currently above the 50 level.
Major Support Level – $40.10
Major Resistance Level – $42.50
Charts courtesy – SimpleFX