Key Highlights
- The ETH price is struggling to clear a major resistance zone near $370 against the US Dollar.
- This week’s highlighted contracting triangle pattern with support at $335 on the hourly chart of ETH/USD (data feed via SimpleFX) is at risk of downside break.
- The pair is now trading below the 100 hourly simple moving average at $347, which is a bearish sign.
Ethereum price is struggling to hold gains against the US Dollar and Bitcoin, and it looks like ETH/USD may break $335 for more declines in the short term.
Ethereum Price Resistance
This week we followed a contracting range pattern with support as $330-335 for ETH price against the US Dollar. It looks like the price is struggling to hold the stated supports, as there was spike towards $318. However, the price recovered later, and moved above the $330 support. Another key point was a close below the 100 hourly simple moving average at $347. It is a short-term bearish sign, and suggests that the price may soon break $330.
On the upside, this week’s highlighted contracting triangle pattern with resistance at $365 on the hourly chart of ETH/USD is acting as a major hurdle. It prevented gains on many occasions, and pushed the price below $350. If sellers gain momentum once again, they can push the price below $330. The stated level also represents the 38.2% Fib retracement level of the last wave from the $256 low to $375 high.
The only positive so far is the fact that there was no close below the contracting triangle pattern support at $335. Once there is an hourly close below $330, there can be an increase in the bearish pressure. On the upside, the triangle resistance is currently at $364, which is a major barrier for buyers.
Hourly MACD – The MACD has moved into the bearish zone.
Hourly RSI – The RSI is now below the 50 level, and heading lower.
Major Support Level – $330
Major Resistance Level – $364
Charts courtesy – SimpleFX
