Key Highlights
- ETH price failed to move higher and it traded below the $862 support against the US Dollar.
- There is a connecting bearish trend line forming with resistance at $865 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair may correct a few points in the short term, but it could face sellers near $865-870.
Ethereum price declined recently against the US Dollar and Bitcoin. ETH/USD now remains at a risk of more declines as long as it is below $865.
Ethereum Price Resistance
There was a minor downside wave initiated in ETH price from the $876 swing high against the US Dollar. The price declined and traded below the $860 and $862 support levels. During the downside, there was a break below a short-term bullish trend line at $863 on the hourly chart. Moreover, there was a close below the $860 support and the 100 hourly simple moving average, which is a negative sign.
A low was formed at $835 from where the price started an upside correction. It is currently testing the 23.6% Fib retracement level of the last drop from the $876 high to $835 low. However, the 100 hourly SMA is acting as a resistance near $852 and is prevented gains. On the upside, there is a connecting bearish trend line forming with resistance at $865 on the hourly chart of ETH/USD. An intermediate resistance is the 50% Fib retracement level of the last drop from the $876 high to $835 low.
Therefore, if the price corrects higher, it may face sellers near the $860 and $862 resistance levels. On the downside, a break below the recent low of $835 may call for more declines towards $800 and $785.
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI – The RSI is now well below the 50 level with many negative signs.
Major Support Level – $835
Major Resistance Level – $862
Charts courtesy – SimpleFX
