Key Highlights
- ETH price declined heavily and broke the $260, $250 and $240 support levels against the US Dollar.
- This week’s followed crucial bearish trend line played well with resistance near $284 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair traded close to the $200 level and it is currently correcting higher.
Ethereum price is under a lot of selling pressure against the US Dollar and bitcoin. ETH/USD may continue to slide towards the $200 level in the near term.
Ethereum Price Decline
There was yet another failure to break the $288-290 resistance zone in ETH price against the US Dollar. The ETH/USD pair reacted and declined sharply from the $288 swing high. The price tumbled and broke the $260, $250 and $240 support levels. The decline was very aggressive as the price even traded below the $225 level. Sellers pushed the price close to the $200 level and a new monthly low was formed at $209.
It seems like this week’s followed crucial bearish trend line played well with resistance near $284 on the hourly chart of ETH/USD. The pair is currently attempting a recovery from the $209 low, but it faces many hurdles on the upside. It is currently testing the 23.6% Fib retracement level of the last drop from the $291 high to $209 low. There is also a major bearish trend line on the same chart with resistance at $235. Above this, the price could test the 50% Fib retracement level of the last drop from the $291 high to $209 low at $250.
Looking at the chart, ETH price is clearly under a lot of pressure below $240 and the 100 hourly simple moving average. It may recover in the short term, but it is likely to face sellers near $235 or $250.
Hourly MACD – The MACD is slowly reducing its bearish slope.
Hourly RSI – The RSI is currently well below the 30 level.
Major Support Level – $200
Major Resistance Level – $235
