Key Highlights
- ETH price is trading above the $780 support, but with a negative bias against the US Dollar.
- There is a major bearish trend line forming with resistance at $850 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair should break the $850 resistance and the 100 simple moving average (4-hour) for more gains.
Ethereum price is facing a tough challenge against the US Dollar and Bitcoin. ETH/USD has to gain pace above $850 to continue moving higher.
Ethereum Price Resistance
There was a slow and steady rise in ETH price this past week above $800 against the US Dollar. However, there was no upside break above the $900 resistance. Later, the price started a minor downside move towards $800 and kept forming lower low. More importantly, the price remained below the $900 pivot level and the 100 simple moving average (4-hours).
The last swing low was formed near $776 from where the price moved higher. It traded above the 23.6% Fib retracement level of the last decline from the $970 high to $776 low. However, there was no break above the $880 resistance and the 100 simple moving average (4-hour). ETH also failed near the 50% Fib retracement level of the last decline from the $970 high to $776 low. Since then, is it is slowly declining and is currently trading below $850. On the upside, there is a major bearish trend line forming with resistance at $850 on the 4-hours chart of ETH/USD.
It looks like the price may continue to move down and it could test $800. To initiate a fresh upside move, the price must break the $850 resistance and the 100 simple moving average (4-hour). Above $850, the next resistance levels are at $880 and $900.
4-hours MACD – The MACD is mostly flat with negative signs.
4-hours RSI – The RSI is moving lower towards the 30 level.
Major Support Level – $800
Major Resistance Level – $850
Charts courtesy – SimpleFX