Key Highlights
- ETH price declined heavily this past week and moved towards the $640 level against the US Dollar.
- There is a crucial bearish trend line forming with resistance at $720 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is slowly recovering and is currently facing many hurdles on the upside near $710-720.
Ethereum price tested major supports versus the US Dollar and Bitcoin. ETH/USD is currently correcting higher and is facing resistances near $710 and 100 hourly SMA.
Ethereum Price Upside Barrier
There was a monster decline from the $825 swing high in ETH price against the US Dollar. The price declined sharply and moved below the $760 and $700 support levels. It even traded below the $650 level and formed a low at $638. Later, it started consolidation is showing positive signs above the $650 level. There was also a break above the 23.6% Fib retracement level of the last decline from the $768 high to $638 low.
On the upside, there is a major resistance seen near $704 and the 100 hourly simple moving average. Moreover, the 50% Fib retracement level of the last decline from the $768 high to $638 low is around the same $703 level. There is also a crucial bearish trend line forming with resistance at $720 on the 4-hours chart of ETH/USD. The pair may continue to trade higher in the near term, but it is likely to face sellers near $704 and $710. A proper break above the $704 resistance and the trend line is needed for more gains.
The above chart indicates that the price is consolidating gains above the $640 level. As long the price above $640-650, there is a chance of ETH breaking the $720 barrier for more gains during the coming days.
4-hours MACD – The MACD is about to move into a bullish zone.
4-hours RSI – The RSI is slowly moving higher towards the 50 level.
Major Support Level – $640
Major Resistance Level – $720