- ETH price made a nice upside move towards $51.00 against the US Dollar where it found resistance, and moved down.
- There was a bullish trend line with support at $49.35 on the hourly chart (ETH/USD, data feed via SimpleFX), which was broken recently.
- The price may have started a downside move with a rejection near the $50.99 level.
Ethereum price after a sharp upside move towards $51 against the US Dollar found sellers, and now ETH/USD is moving lower and struggling.
Ethereum Price Downside Break
Yesterday, there was an increase in buying interest, which pushed ETH price above $49.50 against the US Dollar. First, there was a slight push towards the 50% Fib retracement level of the last wave from the $42.45 low to $48.5 high. Later, it found support, gained pace and moved towards the $51 level. A new weekly high was formed at $50.99 where it faced sellers. As a result, a downside move was initiated.
During the downside move, the price broke the $50.20 support area. Also, there was a break below the 23.6% Fib retracement level of the last wave from the $42.56 low to $50.99 high. This was not all, as there was a break below a bullish trend line with support at $49.35 on the hourly chart of ETH/USD. It looks like the price has made a short term top near $50.99.
The recent break was catching, and could spark a minor dip towards $47.70 in the near term. The next support is around the 38.2% Fib retracement level of the last wave from the $42.56 low to $50.99 high. Any further downsides may take the price towards $46.78.
Hourly MACD – The MACD is reducing the bullish slope.
Hourly RSI – The RSI is currently just above the 50 level, and a break may ignite a downside move.
Major Support Level – $47.70
Major Resistance Level – $50.20
Charts courtesy – SimpleFX