Key Highlights
- Ethereum price dived sharply intraday against the US dollar and moved below the $12.00 area.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD acted as a perfect barrier and pushed the price down.
- The price failed to break the highlighted resistance area, and moved down by more than $2.
Ethereum price weakened during the past couple of sessions against the US Dollar, and looks under pressure in the near term.
Ethereum Price Downside
Ethereum price ETH continued to find offers near a major resistance area as highlighted in yesterday’s post as well. There is a monster bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD, which acted as a perfect barrier for the bulls and finally pushed the price down. The downside pressure was such that the price also moved below the $12.00 support area.
Moreover, the 100 hourly simple moving average also played its part well along with the trend line resistance and prevented the upside move. The price traded as low as $11.32 where it just managed to find bids. It attempted to correct higher from the mentioned level, but it faced sellers once again around the 23.6%% Fib retracement level of the last drop from the $15.10 high to $11.32 low.
The price is once again moving down, and it looks like it may retest the recent low of $11.32 or even break it. A break below it could push the price towards the next support area of $11.00. It think ETHUSD may continue to remain under a bearish pressure for some time.
Hourly MACD – The MACD is in the bearish slope, calling for more losses in the short term.
Hourly RSI – The RSI is well below the 50 level, which is a not a good sign for the ETH bulls.
Major Support Level – $11.00
Major Resistance Level – $12.20
Charts courtesy of Kraken via Trading View
