Key Highlights
- ETH price continued its downward move against the US Dollar and created a new low as forecasted yesterday.
- This week’s long followed bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD is still active and acting as a resistance.
- The price action is not shaping up well, which means it may be the right time for sellers to step back.
Ethereum price ETH declined further to create a new low versus the US Dollar. Can it continue to move down in the short term?
Ethereum Price Decline
Ethereum price ETH is in a downtrend versus the US Dollar as it can be clearly seen from the chart. However, this can be only a short-term trend. Once there is a bottom formed, we can see some recovery in ETH moving ahead. I have been tracking a bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD during this week. It continued to act as a barrier for the ETH bulls, and prevented gains on many occasions.
There was a new low formed yesterday, as I was anticipating. I strongly feel the sellers are exhausted and may step back in time. So, if you are a seller, I think it may be the right time to book profits before there can be a reversal. The price is currently attempting to move above the 23.6% Fib retracement level of the last drop from the $12.33 high to $10.16 low.
If the ETH bulls succeed in settling the price above the stated fib level, then the highlighted bearish trend line may be challenged once again. A break above it is needed for the bulls to be back in action.
Hourly MACD – The MACD is strongly bearish, and showing no signs of a recovery.
Hourly RSI – The RSI is moving away from the oversold readings, and may test the neutral level soon.
Major Support Level – $10.40
Major Resistance Level – $11.00
Charts courtesy – SimpleFX