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Key Highlights
- ETH price declined further and broke the $440 level before recovering against the US Dollar.
- There is a significant bearish trend line formed with resistance at $460 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is struggling to break the trend line and resistance at $460-470, which is a bearish sign.
Ethereum price is facing tough challenges against the US Dollar and Bitcoin. ETH/USD remains in a downtrend as long as it is below $470.
Ethereum Price Upside Hurdle
There was a failure to hold the $455 and $450 support levels in ETH price against the US Dollar. The ETH/USD pair extended its declined below the $440 level and traded close to the $420 level. Later, it started an upside move, traded above the $440 level, but it is still way below the 100 hourly simple moving average. During the recent recovery, the price moved above the 50% Fib retracement level of the last drop from the $483 high to $420 low.
However, the upside move was protected by the $460 level. Moreover, there is a significant bearish trend line formed with resistance at $460 on the hourly chart of ETH/USD. The same trend line acted as a resistance on many occasions such as $483 and $470. More importantly, there was no close above the 61.8% Fib retracement level of the last drop from the $483 high to $420 low. The price is clearly struggling to break the trend line and hurdles near $460. On the downside, supports are seen near $440 and $420. Below this last, the price may test the $400 handle.
Looking at the chart, the price must surpass the trend line and then $460 to start a substantial recovery. The next barrier above $460 is near $483, followed by $500.
Hourly MACD – The MACD is about to move back in the bearish zone.
Hourly RSI – The RSI is flirting with the neutral (50) level.
Major Support Level – $420
Major Resistance Level – $460
