Key Highlights
- ETH price declined sharply and broke a major support at $680 against the US Dollar.
- There was a break below a key bullish trend line with support at $678 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair declined sharply and then recovered, which looks like a false break below $650.
Ethereum price struggled to gain momentum against the US Dollar and Bitcoin. ETH/USD tumbled below $650, but it looks like a false downside break.
Ethereum Price Resistance
There was a continuous selling interest above $680 in ETH price against the US Dollar. As a result, there was a downside reaction and the price broke a major support near $680. It pushed the price down and it declined below the $665 support and the 100 hourly simple moving average. The price also failed to hold the 61.8% Fib retracement level of the last wave from the $600 swing low to $700 high.
During the decline, there was a break below a key bullish trend line with support at $678 on the hourly chart of ETH/USD. The pair settled below the $665 support and the 100 hourly simple moving average. Sellers gained control and pushed the price below $600. However, there was a sharp bounce back from the $585 low, suggesting a false downside break. It moved back above the 38.2% Fib retracement level of the last drop from the $700 high to $585 low. However, there are many hurdles on the upside near the $665 level and the 100 hourly SMA.
Looking at the chart, the 61.8% Fib retracement level of the last drop from the $700 high to $585 low might also act as a strong resistance. Overall, the price may continue to move higher, but it won’t be easy for buyers to push it above $656, $665 and $675.
Hourly MACD – The MACD is back in the bearish zone.
Hourly RSI – The RSI is currently recovering from the oversold levels.
Major Support Level – $620
Major Resistance Level – $665
