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Key Highlights
- ETH price declined recently and moved below the $860 support level against the US Dollar.
- There is an expanding triangle forming with resistance at $870 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair may continue to decline as long as it is below the $870 resistance level.
Ethereum price is struggling to move higher against the US Dollar and Bitcoin. ETH/USD could extend the current decline and it could even break $800.
Ethereum Price Decline
There was a major downside move in ETH price from well above $1,000 against the US Dollar. The price declined and moved below the $950 and $900 levels. It traded below the 23.6% Fib retracement level of the last wave from the $553 low to $970 high. Moreover, there was also a break below the $860 support and the 100 simple moving average (4-hours). It tested the $770 support level and is currently correcting higher.
There was a test of the 50% Fib retracement level of the last wave from the $553 low to $970 high. However, the price is struggling to recover above the $870 level and the 100 SMA. There is also an expanding triangle forming with resistance at $870 on the 4-hours chart of ETH/USD. The pair may continue to decline in the short term as long as it is below the $870 level. On the downside, once there is a break below the $760 support, there can be more declines in the near term.
It looks like the price may consolidate in the short term around the $800 level before making the next move. The risk is towards the downside unless the pair succeeds in breaking the $870 resistance. A break above $870 could push the price above the $920 level.
4-hours MACD – The MACD is slowly reducing its bearish slope.
4-hours RSI – The RSI is moving higher towards the 50 level.
Major Support Level – $760
Major Resistance Level – $870
Charts courtesy – SimpleFX
