Key Highlights
- ETH price failed to hold the $290 support and declined towards $274 against the US Dollar.
- There is a major bearish trend line forming with resistance at $292.50 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price is currently correcting higher, but upsides are likely to be capped by $290 and $292.
Ethereum price made a sharp downside move against the US Dollar and Bitcoin. ETH/USD is now below $290 and remains at a risk.
Ethereum Price Decline
There was no recovery in ETH price above the $300 level against the US Dollar. The price extended its decline and even broke a major support area near $290. It ignited further declines and the price even moved below the $280 level. A low was formed near $274.65 from where there was a sharp recovery. Buyers succeeded in pushing the price above the 38.2% Fib retracement level of the last decline from the $303.21 high to $274.65 low.
However, the upside move was protected by the $290 level. It was a support earlier and recently prevented the current recovery above $290. Moreover, the 50% Fib retracement level of the last decline from the $303.21 high to $274.65 low also acted as a resistance. To the upside, there is a major bearish trend line forming with resistance at $292.50 on the hourly chart of ETH/USD. The trend line resistance is near the 61.8% Fib retracement level of the last decline from the $303.21 high to $274.65 low.
Therefore, a break above $290 and $292 won’t be easy in the near term. On the downside, there is an open space up to $275-274. As long as the price is below $290, it would continue to move down.
Hourly MACD – The MACD is strongly placed in the bearish zone.
Hourly RSI – The RSI has reached the oversold levels with no signs of a recovery.
Major Support Level – $274
Major Resistance Level – $290
Charts courtesy – SimpleFX
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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