Key Highlights
- Ethereum price tumbled further against the US Dollar and traded below the $11.00 support area.
- There are a couple of bearish trend lines formed on the hourly chart (data feed via Kraken) of ETH/USD, which are acting as a barrier for a recovery.
- My yesterday’s bearish view paid off since the price moved down further and broke the $11.20 support area.
Ethereum price is under a lot of bearish pressure, which calls for a test of $10.00, but I think it’s time for sellers to book profits for now.
Ethereum Price Tumble
Ethereum price ETH was crushed during the past few hours, as the price tumbled against the US Dollar. Yesterday, I stated that I switched my bias to negative in the short term, and looking for a test of the $11.20 support area. The price did move down and not only tested the stated level, but also broke it. A new weekly low of $10.66 is formed in ETH and it looks like we should remain bearish in the short term.
Yesterday’s bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD is still in play, but there is another trend line formed on the same chart, acting as a resistance. So, there are a lot of hurdles on the way up for the pair and it won’t be easy for a recovery moving ahead.
However, I think it’s time for sellers to book profits as the downside may have extended too much and there may be a bounce where we can look to sell again. Please note, this is only a short term view, as once there is a base formed, the price may start to move higher once again.
Hourly MACD – The MACD is strongly bearish, which is a negative sign.
Hourly RSI – The RSI is still around the oversold readings, but no sign of a recovery.
Major Support Level – $10.60
Major Resistance Level – $11.20
Charts courtesy – SimpleFX