Key Highlights
- ETH price was not able to move above the $700 resistance and declined sharply against the US Dollar.
- There is a new connecting bearish trend line forming with resistance at $655 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may correct higher in the short term, but upsides are likely to be capped by $650-655.
Ethereum price declined heavily against the US Dollar and Bitcoin. ETH/USD is now well below $655 and is eyeing more downsides in the near term.
Ethereum Price Resistance
The past few sessions were pretty bearish as ETH price failed to break above the $700 resistance level against the US Dollar. The price started a major downside move and broke the $685 and $655 support levels. The decline was such that the price settled below $650 and is currently trading below 100 hourly simple moving average. It traded as low as $625.45 recently and is currently in a bearish zone.
It may correct a few points towards the previous support near $655. An initial resistance is around the 23.6% Fib retracement level of the last decline from the $697 high to $625 low. Moreover, there is also a new connecting bearish trend line forming with resistance at $655 on the hourly chart of ETH/USD. The same trend line is close to the 50% Fib retracement level of the last decline from the $697 high to $625 low. Therefore, if the price moves higher, it is likely to face sellers near $655, $661 and $665.
Looking at the chart, the price was clearly rejected from the $700 zone. It fell sharply and the bias turned bearish with a close below $655. On the downside, a break below the $625 low might push the price towards the $600 level.
Hourly MACD – The MACD is placed heavily in the bearish zone.
Hourly RSI – The RSI is now near the oversold levels.
Major Support Level – $625
Major Resistance Level – $655