- ETH price extended its downside move against the US Dollar and Bitcoin, and traded further lower.
- Yesterday’s highlighted bearish trend lines on the hourly chart (data feed via SimpleFX) of ETH/USD are still in place, and may continue to act as a hurdle for the buyers.
- The price traded as low as $7.61 and currently recovering back above the $8.00 handle.
Ethereum price collapsed further and moved towards the $7.50 support against the US Dollar where ETH/USD found buyers and currently recovering.
Ethereum Price Sell?
ETH price fell further and broke yesterday’s low against the US Dollar and Bitcoin to create new lows. The ETH/USD pair traded as low as $7.61 where the ETH bulls just managed to protect the downside move. The pair is currently recovering and managed to move above the 23.6% Fib retracement level of the decline from the $9.00 high to $7.61 low.
However, the upside move and recovery in ETH may be limited considering the fact that there are many resistances. The most important one is around this week’s highlighted bearish trend lines on the hourly chart (data feed via SimpleFX) of ETH/USD. These trend lines are holding the current bearish trend in ETH. As long as the price is below them, there is a chance of sellers appearing once again.
Moreover, the same trend lines are now coinciding with the 50% Fib retracement level of the decline from the $9.00 high to $7.61 low. The price is likely to test the highlighted resistance area where offers may be presented. If somehow the price manages to break the trend lines, there could be a possibility of a further recovery.
Hourly MACD – The MACD has started to decrease the bearish slope, but remains in the negative zone.
Hourly RSI – The RSI is about to break the 50 level towards the upside. Let’s see if it succeeds.
Major Support Level – $7.60
Major Resistance Level – $8.40
Charts courtesy – SimpleFX