Key Highlights
- ETH price after trading as high as $10.45 against the US Dollar found resistance, and moved down.
- There was an ascending channel pattern formed on the hourly chart of ETH/USD (data feed via SimpleFX), which was broken recently towards the downside.
- The pair is back in the bearish zone, and may continue to move down in the near term.
Ethereum price managed to trade higher, but found sellers near $10.40-10.45, and now ETH/USD is likely heading lower towards $10.10.
Ethereum Price Downside
There was no major joy for ETH price against the US Dollar, as after an upside move above a bearish trend line, it found sellers near $10.40-10.45. The same levels were highlighted in yesterday’s post since there was a break above the 23.6% Fib retracement level of the last decline from the $10.84 high to $10.15 low. There was a chance of it acting as a resistance, and it did. The price failed near $10.45, and started a downside move.
Another important point was the failure to break the 100 hourly simple moving average. Moreover, the price also failed near the 38.2% Fib retracement level of the last decline from the $10.84 high to $10.15 low. During the upside, there was an ascending channel pattern formed on the hourly chart of ETH/USD (data feed via SimpleFX). However, when the price moved down, it broke the channel support at $10.30 and started moving down.
Now, the price is well below the channel support area and looks set for a move towards $10.10. If the current trend continues, there is even a chance of a complete test of $10.00 in the short term.
Hourly MACD – The MACD has just moved from the bearish to bullish zone, calling for a downside move.
Hourly RSI – The RSI has slipped below the 50 level, which is a bearish sign.
Major Support Level – $10.10
Major Resistance Level – $10.40
Charts courtesy – SimpleFX
