Key Highlights
- ETH price was not able to break higher and it is currently trading below $275 against the US Dollar.
- There is a significant bearish trend line formed with resistance near $272-274 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear the $275 resistance and the 100 hourly simple moving average for more gains.
Ethereum price is trading with a neutral bias against the US Dollar and bitcoin. ETH/USD needs to gain momentum above $275 for further gains in the near term.
Ethereum Price Upside Hurdle
There were many attempts by ETH price to move into a bullish zone with a break above the $275-280 zone against the US Dollar. The ETH/USD pair continuously struggled to gain momentum and it recently declined below $275. There was also a break below the 38.2% Fib retracement level of the last wave from the $259 low to $283 high. However, declines were limited since the $270 level acted as a support.
Moreover, it seems like the 50% Fib retracement level of the last wave from the $259 low to $283 high is acting as a support. If there is a break below the $270 and $268 levels, the price may well decline back towards the $262 level. On the upside, there is a significant bearish trend line formed with resistance near $272-274 on the hourly chart of ETH/USD. The same trend line acted as a hurdle for buyers on many occasions above $275. It also coincides with the 100 hourly SMA near the $277 level. Therefore, a break and close above $277-280 is needed for buyers to gain traction.
Looking at the chart, ETH price is clearly struggling to clear the trend line and $280. In the short term, there could be a push towards the $270 and $268 levels before a recovery.
Hourly MACD – The MACD is flat in the bearish zone.
Hourly RSI – The RSI is placed well below the 50 level.
Major Support Level – $270
Major Resistance Level – $277
