- ETH price failed to break the $53.50 resistance against the US Dollar, and moved down.
- Yesterday’s highlighted new bullish trend line with support at $51.08 on the hourly chart (ETH/USD, data feed via SimpleFX) was broken.
- The price might extend the decline and trade towards the $48.89 level.
Ethereum price failed to hold gains above $53 against the US Dollar, and ETH/USD is now positioned for a move towards $49.
Ethereum Price Decline
It looks like ETH price struggled to clear the $53.50 resistance area against the US Dollar. The price failed to hold the $53 and $52 support levels, and started moving lower. Initially, there was a break below the 23.6% Fib retracement level of the last wave from the $47.50 low to $53.48 high. It prompted further declines, and the price moved below $51.50.
The most important break was below yesterday’s highlighted new bullish trend line with support at $51.08 on the hourly chart (ETH/USD, data feed via SimpleFX). At the moment, the price is attempting a close below the 100 hourly simple moving average at $50.45. Moreover, the price is almost below the 50% Fib retracement level of the last wave from the $47.45 low to $53.486 high. Once the price closes below $50.40, there can be a downside move towards $50.
Looking at the current trend, it looks like the price might even break $50 for a move towards the last swing low of $48.00. An intermediate support is at $48.89, which is the 0.764 Fib level of the last move up from the $47.45 low to $53.486 high. On the upside, the broken support at $51.10 and $51.50 might act as a resistance if the price corrects higher.
Hourly MACD – The MACD is extending moves in the bearish zone.
Hourly RSI – The RSI is now well below the 50 level, and heading lower.
Major Support Level – $48.00
Major Resistance Level – $51.50
Charts courtesy – SimpleFX