- ETH price failed to gain pace above the $231 level against the US Dollar, and moved down.
- Yesterday’s highlighted connecting bullish trend line with support at $221 on the hourly chart of ETH/USD (data feed via SimpleFX) was broken.
- There is a chance that the price might extend the recent correction towards the $208 level.
Ethereum price is struggling to gain bullish momentum against the US Dollar and Bitcoin, and now ETH/USD might move down towards $208.
Ethereum Price Correction
Yesterday, we saw a rise in ETH price towards the $231 level against the US Dollar. The price traded as high as $231.39 before starting a correction below $225. First, there was a break below the 23.6% Fib retracement level of the last wave from the $188.80 low to $231.30 high. It opened the doors for an extended correction below $220. Soon, yesterday’s highlighted connecting bullish trend line with support at $221-220 on the hourly chart of ETH/USD was broken.
The downside move was protected by the 38.2% Fib retracement level of the last wave from the $188.80 low to $231.30 high at $215. There is a short-term contracting triangle with resistance near $218 is forming on the same chart. The price may soon break the pattern and make the next move. On the downside, the most important support is near $208. It was a resistance earlier, and now coincides with the 50% Fib retracement level of the last wave from the $188.80 low to $231.30 high at $215.
So, even if the price moves down, it is likely to find support near $208. The overall bias is still bullish, but we can see some downside spikes in the near term.
Hourly MACD – The MACD is now moving in the bearish zone.
Hourly RSI – The RSI is currently just below the 50 level.
Major Support Level – $208
Major Resistance Level – $221
Charts courtesy – SimpleFX