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Key Highlights
- Ethereum price is struggling a lot against the US Dollar, as it is facing a major resistance on the upside.
- The bearish trend line I have been following this week on the hourly chart (data feed via Kraken) of ETH/USD is acting as a tough resistance for the bulls.
- The price is also finding offers near the 100 hourly simple moving average, positioned around the same trend line.
Ethereum price is finding it very tough to break a bearish trend line on the hourly chart. Let us see whether ETH can succeed in breaking it or not.
Ethereum Price Trend Line Resistance
Ethereum price ETH remained below a monster resistance area against the US Dollar, as the buyers failed to take it higher. This week I have been tracking a major bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD, and was looking for the next move. However, the trend line resistance did not want to give up as easily, as every time the price moves higher it faces sellers.
Another factor coming into play is the 100 hourly simple moving average, which is positioned just around the same trend line. So, there are two resistances combined and together acting as a major barrier for the ETH/USD pair. Moreover, the 50% Fib retracement level of the last drop from the $14.29 high to $11.15 low is now aligned with the 100 hourly SMA, giving more reasons to sellers to prevent the upside move.
I think, the price may dip a few points from the current levels before it can attempt to break the highlighted resistance area.
Hourly MACD – The MACD is currently flat, suggesting a minor consolidating under way before the next move.
Hourly RSI – The RSI has just moved below the 50 level, which is a bearish sign in my view.
Major Support Level – $12.20
Major Resistance Level – $12.80
Charts courtesy – SimpleFX
