- ETH price fell further against the US Dollar and formed a new low of $11.14 for this week.
- Yesterday’s highlighted resistance area in the form of a channel pattern on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a perfect resistance.
- The pair remains below a crucial resistance, which can be a hurdle for a recovery.
Ethereum price declined during the past 24 hours against the US Dollar. Can this be the last decline before a reversal?
Ethereum Price Resistance
Ethereum price struggle to clear the $11.50-60 resistance area continued this week. My yesterday’s highlighted channel pattern on the hourly chart (data feed via SimpleFX) of ETH/USD played a major role. Its upper trend line provided offers and pushed the price lower. There was a break below the yesterday’s low and a new weekly low of $11.14 was formed.
The price is currently recovering and facing resistance near the 23.6% Fib retracement level of the last drop from the $12.30 high to $11.14 low. However, the most important resistance is near the 100 hourly simple moving average. The stated MA is also coinciding with a bearish trend line on the hourly chart. Moreover, the 38.2% Fib retracement level of the last drop from the $12.30 high to $11.14 low is also around the same trend line.
So, we can say that it won’t be easy for the ETH bulls to break the $11.50 resistance area. However, if the recent low is a perfect 5-wave pattern in ETH/USD, then there is a chance of a move higher. In my view, we should wait for a break and then see how the price trades in the near term.
Hourly MACD – The MACD is in the bearish zone, but it is losing grip now.
Hourly RSI – The RSI is just below the 50 level, and attempting to move above it.
Major Support Level – $11.50
Major Resistance Level – $11.20
Charts courtesy – SimpleFX