Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Key Highlights
- ETH price fell sharply and even traded below the $500 level before correcting higher against the US Dollar.
- There is a major bearish trend line forming with resistance at $550 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is struggling to move above the $540-550 resistance area, which is a bearish sign in the near term.
Ethereum price nosedived recently against the US Dollar and Bitcoin. ETH/USD has to move above the $550 resistance to initiate a decent recovery.
Ethereum Price Upside Hurdle
The past few days were mostly bearish on ETH price as it declined below $500 against the US Dollar. The price tumbled and even broke the $460 support area. However, it managed to stay above the $450 level and started an upside correction. A low was formed at $453 from where it corrected upwards. Buyers succeeded in pushing the price above the 38.2% Fib retracement level of the last decline from the $608 high to $453 low.
The upside move was positive, as the price also moved above the $500 level. However, the current wave was protected by a major bearish trend line with current resistance at $550 on the hourly chart of ETH/USD. The pair also failed to move past the 61.8% Fib retracement level of the last decline from the $608 high to $453 low. It seems like the price is facing a major sell wall near the $550-560 zone. Therefore, a successful close above the $550 level is needed for buyers to push the price further higher.
Moreover, the $570 level is near the 100 hourly simple moving average, which is the next hurdle. On the downside, there is a decent support at $500. Below $50, the price may retest the $450 zone in the near term.
Hourly MACD – The MACD is now back in the bullish zone.
Hourly RSI – The RSI is currently well above the 50 level.
Major Support Level – $500
Major Resistance Level – $550
Charts courtesy – Trading View
