- ETH price fell from the $393.56 high and currently remains under pressure against the US Dollar.
- There is a major contracting triangle pattern with resistance at $320.00 forming on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair is likely to break the $296 level and extend declines in the near term.
Ethereum price is under heavy selling pressure against the US Dollar and Bitcoin. ETH/USD might continue to decline as long as below $320.
Ethereum Price Resistance
It was a volatile week for ETH price as it traded towards the $400 level against the US Dollar. The price made a top near $393.56 and later started moving lower. Sellers gained control after the news of Chinese bitcoin exchanges ban rumors, and the price dropped below $325. A low was formed near $274.01 before the price started correcting lower. There was a correction initiated and the price moved above the 38.2% Fib retracement level of the last decline from the $393.56 high to $274.01 low.
However, the upside move was protected by a major hurdle near $333. The 50% Fib retracement level of the last decline from the $393.56 high to $274.01 low is at $333 to act as a barrier. Moreover, the 100 simple moving average on the 4-hours chart is at $337. It looks like a major contracting triangle pattern with resistance at $320.00 is forming on the 4-hours chart of ETH/USD.
The pair is again heading lower and currently testing the triangle support at $294. A break and close below $294 could take the pair back towards $274. On the upside, the $320-333 levels remains a major resistance zone. If you are looking to buy, you should wait for the price to get stable above $310 before entering into a trade.
4-hours MACD – The MACD is currently in the bearish zone.
4-hours RSI – The RSI is now well below the 50 level.
Major Support Level – $294
Major Resistance Level – $333
Charts courtesy – SimpleFX