Key Highlights
- ETH price traded below the $260 support area against the US Dollar before finding bids near $255.
- There is an ascending channel forming with support at $274 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price might break the channel support and decline once again towards $260.
Ethereum price remains in the bearish zone against the US Dollar and Bitcoin. ETH/USD might complete correction and move lower once again towards $260-255.
Ethereum Price Correction
There was no major correction in ETH price yesterday as it failed to remain above the $290 level against the US Dollar. The price started a correction from the $280 level and formed an ascending channel on the hourly chart. It corrected above the $310 level, but failed near $315. After the failure, the price started declining once again and broke the channel support at $297. There was a sharp decline in ETH and the price even broke the $270 and $260 support levels.
A low was formed near $255.54 from where the price is currently correcting. It has moved above the 23.6% Fib retracement level of the last decline from the $315.21 high to $255.54 low. There is also an ascending channel forming with support at $274 on the hourly chart of ETH/USD. The pair is currently struggling to clear the 38.2% Fib retracement level of the last decline from the $315.21 high to $255.54 low.
Therefore, there is a chance that ETH would break the channel support at $274. Once the price $274, it could trade back towards $260 or even $255. On the upside, a break above $290 and the 100 hourly simple moving average is needed for more gains.
Hourly MACD – The MACD is still placed well in the bearish zone.
Hourly RSI – The RSI is retreating from the 50 level and heading lower.
Major Support Level – $260
Major Resistance Level – $290