- ETH price dived yesterday against the US Dollar and Bitcoin after Donald Trump won the US President Seat.
- There are a few bearish trend lines formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which are acting as a crucial resistance at $10.60-65.
- As long as the price is below the stated resistance levels, it remains under a bearish pressure.
Ethereum price declined yesterday after the US presidential election outcome, and it looks like it is currently under a major resistance area against the US Dollar.
Ethereum Price Resistance
ETH price faced a lot of pressure yesterday against the US Dollar after Donald Trump won the US President Seat. There was a decline below the $10.50 support area, taking the price back towards the $10.10 level. The price is currently correcting higher, but it won’t be easy for it to recover. There is a monster resistance formed near $10.60-65, which may prevent any upside move in ETH.
There are many reasons why the highlighted resistance area is important. First, there are a few bearish trend lines formed on the hourly chart (data feed via SimpleFX) of ETH/USD aligned. Second, the 100 hourly simple moving average is positioned just above it. Lastly, the 50% Fib retracement level of the decline from the $11.09 high to $10.107 low is also around the same area.
So, it is quite clear that the $10.60-65 represents a major resistance zone. If the price moves higher, it could face sellers. One may even consider selling near the highlighted resistance area with a tight stop. However, one must not forget that the ETH may not remain low for this long. In time it may get catalyst for a move higher.
Hourly MACD – The MACD is reducing the bearish slope, which is a slight contraction signal.
Hourly RSI – The RSI is struggling to break the 50 level, which is a concern.
Major Support Level – $10.30
Major Resistance Level – $10.65
Charts courtesy – SimpleFX