Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Key Highlights
- ETH price failed to gain pace above $940 and declined sharply against the US Dollar.
- There was a break below a major bullish trend line with support at $925 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair is now trading below the $900 level and it seems like the price may struggle to correct higher.
Ethereum price declined sharply against the US Dollar and Bitcoin. ETH/USD may correct a few points from the current levels, but upsides remain capped.
Ethereum Price Resistance
There was no upside break in ETH price above the $940 resistance level against the US Dollar. It resulted in a downside reaction and the price declined sharply below $900. It even moved below the $880 support and settled below the 100 hourly simple moving average. There are many bearish signs visible on the charts below the $900 level. The recent low formed was $848 from where the price started an upside correction.
During the downside move, there was a break below a major bullish trend line with support at $925 on the hourly chart of ETH/USD. The pair traded above the 23.6% Fib retracement level of the last decline from the $948 high to $848 low. However, the upside move seems to be limited as the price is facing sellers near $895. On the upside, the 50% Fib retracement level of the last decline from the $948 high to $848 low is likely to act as a resistance. Moreover, there is also a bearish trend line on the same chart with resistance at $900.
Therefore, it seems like the price may struggle to correct further above $890-900. On the downside, the $840-850 area is a major support in the short term.
Hourly MACD – The MACD is placed strongly in the bearish zone.
Hourly RSI – The RSI is attempting a small recovery from the oversold levels.
Major Support Level – $850
Major Resistance Level – $900
Charts courtesy – SimpleFX
