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Key Highlights
- ETH price after trading as high as $263 found sellers against the US Dollar and moved down.
- There was a major connecting bullish trend line with support at $248.50 on the hourly chart of ETH/USD (data feed via SimpleFX), which was broken recently.
- The pair is attempting a close below the 100 hourly simple moving average and $245.
Ethereum price traded slightly lower against the US Dollar and Bitcoin, and ETH/USD broke a major trend line support for a move below $245.
Ethereum Price Could Trade Towards $229?
Yesterday, we thought that ETH price could test the 1.236 extension of the last decline from the $263 high to $245 low against the US Dollar. However, the price failed to move above the last swing high as $263 and moved down. There was no test of the $268.10 resistance, which is a short-term bearish sign. The price started a downside move, and broke the 23.6% fib retracement level of the last wave from the $208 low to $263 high.
It prompted further declines, and the price moved below $250. During the downside, there was a break below a major connecting bullish trend line with support at $248.50 on the hourly chart of ETH/USD. It is a strong bearish sign in the short term with a close below $250. At the moment, the pair is attempting a close below the 100 hourly simple moving average and $245.
If sellers succeed in settling the price below $240, there can be a decline towards $230.229. The stated levels coincide with the 61.8% fib retracement level of the last wave from the $208 low to $263 high. In the short-term, there can be declines towards $230 and $220, and buyers need to be careful.
Hourly MACD – The MACD has moved into the bearish zone.
Hourly RSI – The RSI is now well below the 50 level, and heading lower.
Major Support Level – $240
Major Resistance Level – $255
Charts courtesy – SimpleFX
