Key Highlights
- ETH price fell hard and traded below the $300 handle against the US Dollar.
- There are two bearish trend lines forming with resistance near $320 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price might correct higher, but likely to face sellers near $300, $320 and $330.
Ethereum price made a sharp downside move against the US Dollar and Bitcoin. ETH/USD is now bearish and looking to extend declines below $280.
Ethereum Price Decline
It was a bad day for ETH price as it tumbled below $300 against the US Dollar. The price started declining as soon as Chinese ban on ICOs news came out. Pairs like BTC/USD, BCH/USD and ETH/USD were crushed. Yesterday, I mentioned that one might consider trading with a break either above $355 or below $335. If you entered on a break below $335, you should now look to close with good $50+ point’s profit. The price recently traded as low as $274.01 and currently attempting a correction.
It is trading near the 23.6% Fib retracement level of the last drop from the $319.34 high to $274.01 low. There are two bearish trend lines forming with resistance near $320 on the hourly chart of ETH/USD. These trend lines are likely to act as a strong barrier for buyers near $320-330. An intermediate resistance is around the 50% Fib retracement level of the last drop from the $319.34 high to $274.01 low at $296.67.
If the price corrects higher, it is likely to face sellers near $295-300. On the downside, a break below the recent low of $274 would open the doors for a test of $260. Any further losses could take ETH towards $250.
Hourly MACD – The MACD is now placed well into the bearish zone.
Hourly RSI – The RSI is currently correcting, but remains well below the 50 level.
Major Support Level – $260
Major Resistance Level – $320