Key Highlights
- ETH price failed to extend gains above the $724 level and started a downside move against the US Dollar.
- Yesterday’s highlighted important bullish trend line with support at $707 was broken on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now well below $700 and the 100 hourly simple moving average, which is a bearish sign.
Ethereum price is under pressure against the US Dollar and Bitcoin. ETH/USD broke a key support at $708 and it may well trade below $680 in the near term.
Ethereum Price Trend
After a failure to move above the $724-725 resistance, ETH price started a downside move against the US Dollar. The price declined and moved below the $710 and $700 support levels. During the decline, it cleared the 50% Fib retracement level of the last leg from the $656 low to $724 high. It opened the doors for more losses and the price closed below the $700 support and the 100 hourly simple moving average.
More importantly, yesterday’s highlighted important bullish trend line with support at $707 was broken on the hourly chart of ETH/USD. The pair tested the 61.8% Fib retracement level of the last leg from the $656 low to $724 high. It may correct a few points in the near term towards $700. However, the broken support at $700 and the 100 hourly SMA are likely to prevent gains. If buyers succeed in surpassing the $700 hurdle, the price could retest the $724-725 resistance zone.
Looking at the chart, the price is currently under pressure below $700. It seems like it may accelerate declines towards the next support near $677. Any further declines below $677 may well put a lot of pressure on bulls and the price might drop towards the last swing low of $656.
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI – The RSI is now well below the 50 level.
Major Support Level – $677
Major Resistance Level – $700
