Key Highlights
- ETH price remained in a bearish trend and traded to a new weekly low at $225 against the US Dollar.
- There is a new bearish trend line with resistance at $235 forming on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price may retest the $225 swing low today where buyers could be tested.
Ethereum price is struggling to recover against the US Dollar and Bitcoin, and ETH/USD might continue to slowly grind lower towards or below $225.
Ethereum Price Decline
There was an extension of the last leg in ETH price as it traded below the $248 support against the US Dollar. The price declined to a new weekly low at $225. Later, a recovery was started and the price moved above the 23.6% Fib retracement level of the last decline from the $270.85 high to $225.89 low. However, the mentioned recovery could not last long, as it was protected by $245.
There is also a new bearish trend line with resistance at $235 forming on the hourly chart of ETH/USD. It prevented gains along with the 50% Fib retracement level of the last decline from the $270.85 high to $225.89 low. The price completed a recovery from the $225 swing low and currently moving down. It may soon retest the $225 level or could even break it for a new low in the near term. Any recoveries above $240 might be limited considering the current market sentiment.
On the downside, we can keep a watch on the $225 low, as it might prevent declines one more time. A break below it would open the doors for losses towards the $200 handle in the near term.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI – The RSI is currently well below the 50 level and signaling negative bias.
Major Support Level – $225
Major Resistance Level – $240
Charts courtesy – SimpleFX
