Key Highlights
- ETH price is facing a strong resistance near the previous support at $224-225 against the US Dollar.
- There is a declining channel in place with resistance at $223 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair has to break the $223 and $224 resistance levels to gain traction in the near term.
Ethereum price is mostly consolidating against the US Dollar and bitcoin. ETH/USD could decline once again if there is no close above the $224-225 resistance.
Ethereum Price Analysis
Yesterday, there was a decent recovery above the $220 level in ETH price against the US Dollar. The ETH/USD pair also moved above the 23.6% Fib retracement level of the last drop from the $240 swing high to $214 low. However, the upside move faced a strong resistance near the previous support at $224-225. The price failed to settle above the $224 resistance and is currently moving south.
It is now trading below the 23.6% Fib retracement level of the recent upside move from the $214 low to $225 high. More importantly, it seems like the 100 hourly simple moving average is acting as a solid barrier near $223.50. There is also a declining channel in place with resistance at $223 on the hourly chart of ETH/USD. Therefore, the price has to break the $223 and $224 resistance levels to trade further higher. The next key resistance to the topside is near $234, which is the previous swing high. On the downside, the 61.8% Fib retracement level of the recent upside move from the $214 low to $225 high at $218 is an immediate support.
Looking at the chart, ETH price is clearly struggling to surpass the $224 resistance. If sellers push the price below the $218 support, there could be a downside break towards the $214 and $212 levels.
Hourly MACD – The MACD is slightly placed in the bearish zone.
Hourly RSI – The RSI is currently below the 50 level.
Major Support Level – $218
Major Resistance Level – $224
