- ETH price after making a top near the $11.40 level against the US Dollar started trading lower.
- Yesterday’s highlighted connecting bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was broken.
- The price closed below the $10.00 handle and looks set for more declines in the near term.
Ethereum price looks like found barriers on the upside against the US Dollar and Bitcoin. ETH/USD broke a support area at $10.20 and currently trading lower.
Ethereum Price Downside
We saw recently an upside surged in ETH price against the US Dollar, as it traded above the $11.00 handle. However, the price later found sellers near $11.40, and started correcting lower. During the downside move the price initially broke the 23.6% Fib retracement level of the last wave from the $9.13 low to $11.40 high. Later, it continued to trade lower and broke other supports as well.
The most important was a close below yesterday’s highlighted connecting bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD. Moreover, the price also traded below the last swing low of $9.13 to trade as low as $9.09. It is currently moving back higher, but found sellers near the 50% Fib retracement level of the last drop from the $11.41 high to $9.09 low. There are chances that the price may once again head lower, and trade towards the last swing low of $9.10.
Overall, it looks like the price has made a short-term top, and may move down. The most important support is around the 100 hourly simple moving average, which is positioned near $9.00. As long as the price stays above it, there is a possibility of a bounce back.
Hourly MACD – The MACD is now back in the bearish zone, but slowing reducing slope.
Hourly RSI – The RSI has closed below the 50 level, which is a negative sign.
Major Support Level – $9.10
Major Resistance Level – $10.25
Charts courtesy – SimpleFX