Key Highlights
- ETH price struggled to move higher and broke an important support at $284 against the US Dollar.
- Yesterday’s highlighted declining channel pattern with support near $270 on the hourly chart of ETH/USD (data feed via SimpleFX) was broken.
- The price might continue to decline and could even trade towards the $240 level.
Ethereum price upside seems to be exhausted against the US Dollar and Bitcoin. ETH/USD broke $280 and now it can even test the $240 support in the near term.
Ethereum Price Resistance
There was a complete failure in ETH price to surpass the $290 level against the US Dollar. The price consolidated in a range below $290, but finally sellers had the upper hand. ETH declined and broke a couple of important support levels to trade below the $270 level. First, there was a break of the $285 support and the 100 hourly simple moving average. Second, yesterday’s highlighted declining channel pattern with support near $270 on the hourly chart of ETH/USD was cleared.
It opened the doors for more losses and the price moved below the $280 support and the 23.6% Fib retracement level of the last wave up from the $198.75 low to $298.70 high. The price also succeeded in breaking a crucial bullish trend line with support at $270 on the same chart. There was even a spike towards the 50% Fib retracement level of the last wave up from the $198.75 low to $298.70 high.
The broken support on the upside near $280 and the 100 hourly simple moving average might act as resistances going forward. On the downside, the next major support is near $240 and the 61.8% Fib retracement level of the last wave up from the $198.75 low to $298.70 high.
Hourly MACD – The MACD is now well placed into the bearish zone.
Hourly RSI – The RSI is currently recovering from the oversold levels.
Major Support Level – $240
Major Resistance Level – $280
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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