- ETH price extended its downside versus the US Dollar, and selling rallies worked.
- Yesterday’s highlighted monster resistance area on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a perfect sell zone.
- The price may correct a few points from the current levels, but remains in a bearish zone.
Ethereum price declined further against the US Dollar, and it looks like that ETH/USD sellers are back in control for the short-term.
Ethereum Price Sell
Ethereum price as mentioned yesterday traded below a major support area against the US Dollar, and was seen under a lot of pressure. There was a sharp downside move, taking the price below $12.80. A new weekly low of $12.49 was formed (data feed via SimpleFX). The price after testing yesterday’s broken support area found sellers and started moving down.
Yesterday, I highlighted that one may even consider selling near the highlighted resistance area in the short term. The idea did work, and the price moved down. Currently, the price is recovering. It has moved above the 23.6% Fib retracement level of the drop from the $13.34 high to $12.49 low. The most important resistance on the upside is around a bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD.
It is also coinciding with the 50% Fib retracement level of the drop from the $13.34 high to $12.49 low. Lastly, the 100 hourly simple moving average is also positioned near the trend line. So, it is again an important resistance area. One may once again consider selling near the highlighted resistance area in the short term. However, the price should now start finding support near $12.50.
Hourly MACD – The MACD is currently in the bearish zone, but may attempt to move into the bullish area.
Hourly RSI – The RSI is currently attempting to move above the 50 level, which is a sign of a correction.
Major Support Level – $12.50
Major Resistance Level – $12.91
Charts courtesy – SimpleFX