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Key Highlights
- ETH price failed to gain traction and broke the $440 support against the US Dollar.
- There is a new connecting bearish trend line forming with resistance near $460 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently under pressure and it seems like it could retest the $$420 swing low.
Ethereum price is showing signs of further weakness against the US Dollar and Bitcoin. ETH/USD is likely to trade further lower as long as it is below $450-460.
Ethereum Price Resistance
Recently, there was a failure near the $474 level in ETH price against the US Dollar. The ETH/USD pair started a slow and steady downside move and broke the $450 and $440 support levels. More importantly, there was a close below the $460 pivot level and the 100 hourly simple moving average. During the recent slide, the price moved in a bearish zone with a close below the 50% Fib retracement level of the last wave from the $420 low to $474 high.
At present, the price is trading near the $430 level with many bearish signs. If there is an increase in selling pressure, the price could revisit the $420 low. Below this, the price could even test the 1.236 Fib extension level of the last wave from the $420 low to $474 high. On the upside, an initial resistance is near the $450 level. Above this, there is a new connecting bearish trend line forming with resistance near $460 on the hourly chart of ETH/USD.
Looking at the chart, the price is clearly poised to extend declines below $430. To initiate a fresh recovery, buyers need to push the price above $460 and the 100 hourly SMA. Above $460, the next resistance is around the $474-475 zone.
Hourly MACD – The MACD is moving in the bearish zone with negative signs.
Hourly RSI – The RSI is currently placed well below the 40 level.
Major Support Level – $420
Major Resistance Level – $460
