- ETH price started a correction after trading as high as $10.84 against the US Dollar.
- There is a bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is pushing the price down with resistance near $10.55.
- The pair has also moved below the 100 hourly simple moving average at $10.54, which is a bearish sign.
Ethereum price started a substantial correction yesterday against the US Dollar, and it looks like ETH/USD may trade towards $10.20 in the short term.
Ethereum Price Correction
Yesterday, I highlighted the start of a correction in ETH price against the US Dollar after a high was formed near $10.84. There was a decline initiated, taking the price below the 23.6% Fib retracement level of the last wave from the $9.57 low to $10.84 high. It was the first signal that the price may decline further. It moved down, and traded close to the 38.2% Fib level of the same fin wave.
The worst part was the close below the 100 hourly simple moving average at $10.54. It may now put more bearish pressure, and ignite further losses. If the current market sentiment stays intact, there is a chance of a move towards $10.20. The stated level also coincides with the 50% Fib retracement level of the last leg higher from the $9.57 low to $10.84 high.
On the upside, there is a major resistance near $10.55, as a bearish trend line is positioned on the hourly chart (data feed via SimpleFX) of ETH/USD. Moreover, the 100 hourly SMA is also aligned. So, we can say if the price moves higher, it may face sellers near $10.55.
Hourly MACD – The MACD is still in the bearish zone with no sign of an upside move.
Hourly RSI – The RSI is well below the 50 level, which is a negative sign.
Major Support Level – $10.20
Major Resistance Level – $10.55
Charts courtesy – SimpleFX