- The ETH price short-term bearish bias got traction as it moved below the $335 support against the US Dollar.
- This week’s important contracting triangle pattern with support at $330-335 on the hourly chart of ETH/USD (data feed via SimpleFX) was clearly broken.
- The pair is currently correcting higher but may face sellers near 100 hourly simple moving average and $335.
Ethereum price failed to hold the short-term bullish bias against the US Dollar and Bitcoin, and now ETH/USD remains at risk of more losses towards $275.
Ethereum Price Decline
We followed a crucial contracting triangle pattern with support at $330-335 for ETH price against the US Dollar. The price was struggling to hold the $330 support yesterday. It looks like sellers won a huge battle and took the price below $330. There was a clear break and close below the contracting triangle at $330, which ignited a sharp downside move. The price moved below the 50% Fib retracement level of the last wave from the $256 low to $375 high.
It traded as low as $288 where buyers appeared. The price is currently correcting higher and moved above the 23.6% Fib retracement level of the last decline from the $365 high to $288 low. However, the broken trend line support at $330 on the upside may act as a major hurdle. It also coincides with the 100 hourly simple moving average at $335. An initial resistance is near the 50% Fib retracement level of the last decline from the $365 high to $288 low.
So, if the price corrects higher from the current levels, it may face sellers near $335 or $340. On the downside, there is a chance of ETH retesting the $300-285 support zone.
Hourly MACD – The MACD is now well placed in the bearish zone.
Hourly RSI – The RSI is attempting to move back above the 50 level.
Major Support Level – $300
Major Resistance Level – $340
Charts courtesy – SimpleFX