- ETH price continued to move down against the US Dollar and Bitcoin, as buyers failed to show up.
- Yesterday’s highlighted bearish trend lines on the hourly chart (data feed via SimpleFX) of ETH/USD are still in play and acting as a resistance.
- There is a risk of a breakdown in ETH as long as the price is below $9.00.
Ethereum price delinked below $8.50 against the US Dollar, and ETH/USD currently looks poised for further losses in the near term.
Ethereum Price Decline
There was no stopping the ETH sellers, as the price continued to move down. Many buyers are now annoyed, and failed to lift the market sentiment. It looks like there are more losses on the cards for ETH price. The most important point is that the price broke the $8.50 support, which clears the way for more losses may be towards the $8.00 handle in the short term.
I highlighted a couple of bearish trend lines on the hourly chart (data feed via SimpleFX) of ETH/USD. They are still valid and acting as a resistance for the pair. As long as there is no break above these trend lines, there are chances of more declines. An initial resistance is around the 23.6% Fib retracement level of the decline from the $9.00 high to $8.36 low. It is also coinciding with the first trend line. So, it holds a lot of value moving ahead. A break above it may take the price towards the second trend line, positioned with the 50% Fib retracement level of the decline from the $9.00 high to $8.36 low.
Overall, the price remains at a risk in the near term, and may decline further.
Hourly MACD – The MACD is well in the bearish slope, and pointing more declines.
Hourly RSI – The RSI is reaching oversold readings, but buyers need to put up a fight.
Major Support Level – $8.20
Major Resistance Level – $8.60
Charts courtesy – SimpleFX