Ethereum Price Technical Analysis – ETH/USD Extends Decline

Key Highlights

  • ETH price failed to hold an important support and traded towards $301 against the US Dollar.
  • Yesterday’s highlighted short-term bullish trend line with support at $305 was broken on the hourly chart of ETH/USD (data feed via SimpleFX).
  • The price is currently holding the 100 hourly simple moving average at $300.80, but remains at risk.

Ethereum price started declining once again against the US Dollar and Bitcoin. ETH/USD might extend declines toward $299 or even $297.

Ethereum Price Trend

There was no upside break in ETH price above the $309 level against the US Dollar. The price started a downside move and broke the 23.6% Fib retracement level of the last wave up from the $290.98 low to $309.08 high. The downside wave was such that the price failed to hold an important support and traded towards $301. During the downside move, there was a break below yesterday’s highlighted short-term bullish trend line with support at $305 on the hourly chart of ETH/USD.

It opened the doors more declines and the price even cracked the $302 support to test the 100 hourly simple moving average. ETH is currently holding the 100 hourly simple moving average, but remains at risk of more losses toward $299 or even $297. The next important support is near the 50% Fib retracement level of the last wave up from the $290.98 low to $309.08 high at $299.99. A close below $299.99 could ignite a downside wave towards the next support at $297.00.

On the upside, the $305 level is now a resistance area. A close above $305 is required for a retest of $309. Overall, there can be more ranging moves below $309 before ETH/USD makes the next move.

Hourly MACD – The MACD is gaining pace in the bearish zone.

Hourly RSI – The RSI is now well below the 50 level and showing negative signs.

Major Support Level – $299

Major Resistance Level – $305

 

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.


Published by

Aayush Jindal

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is
well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets.

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