TA: Ethereum Lacks Momentum, Showing Early Signs of a Minor Drop

Aayush Jindal

Last Updated: June 11, 2024 8:59 am

2 mins read

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Ethereum climbed higher nicely from the $425 support zone against the US Dollar. ETH price is struggling to clear the $460 resistance and it could revisit $420 in the near term.

Ethereum is showing a few bearish signs below the key $460 resistance level.
The price is trading above the $440 support and the 100 hourly simple moving average.
There is a major contracting triangle forming with support near $450 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could decline towards $420 if it fails to stay above $440 and the 100 hourly SMA.

Ethereum Price is Facing Hurdles

After a sharp downside correction, Ethereum found support near the $425 level. ETH price formed a base above $425 and started a fresh increase above the $435 resistance.

Ether gained pace above the $440 resistance and the 100 hourly simple moving average. There was also a break above the $450 resistance, but the price faced a major barrier near the $460 level. A high is formed near $461 and the price is currently declining.

There was a break below the $454 level, plus the price traded below the 23.6% Fib retracement level of the recent wave from the $425 low to $461 high.

Source: ETHUSD on TradingView.com

It seems like there is a major contracting triangle forming with support near $450 on the hourly chart of ETH/USD. If ether price breaks the triangle support, it could test the $442 support. It is close to the 50% Fib retracement level of the recent wave from the $425 low to $461 high.

The next major support is near the $440 level and the 100 hourly simple moving average, below which there is a risk of a sharp decline towards $425 or even $420 in the coming sessions.

Upsides Capped in ETH?

On the upside, an initial hurdle for Ethereum is near the triangle resistance at $458. The main resistance is near the $460 level, above which the bulls are likely to gain strength.

A successful break above the $460 resistance is likely to open the doors for a move towards the $470 zone. The next major resistance is near the $480 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is sliding and approaching the 50 level.

Major Support Level – $440

Major Resistance Level – $460

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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