Ethereum Price Technical Analysis – ETH Sets Short-Term Top

Key Highlights

  • ETH price after setting a high against the US Dollar moved down and traded below the $13.60 level.
  • Yesterday’s highlighted bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was broken to open the doors for more losses.
  • My suggestion to stay alert yesterday was correct, as the price corrected lower sharply.

Ethereum price after making a new high versus the US Dollar created a top and started moving lower. More losses to follow?

Ethereum Price Correction

Ethereum price recently posted a high of $14.25 against the US Dollar where sellers appeared and protected any further gains. I cautioned yesterday stating that the price is in the overbought territory and may move down soon. The price did correct lower and broke not only the $14.00 handle, but also closed below the $13.60 support area.

During the downside move, there was a break below yesterday’s highlighted bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD. Moreover, the price cleared the 23.6% Fib retracement level of the last wave from the $12.01 low to $14.25 high. However, the downside found support near the 100 hourly simple moving average. Furthermore, the 50% Fib retracement level of the same wave acted as a barrier for the sellers.

Ethereum Price Technical Analysis Ethereum Price Technical Analysis

Now, the price is attempting to move higher once again. However, there is a bearish trend line on the hourly chart, which is acting as a resistance. I think as long as the price is below the trend line resistance, there is a chance of more declines in the near term. ETH/USD might have created a short-term top for a move back towards the $13.00 handle at least.

Hourly MACD – The MACD is now in the bearish zone, and suggesting a toppish pattern.

Hourly RSI – The RSI is back below the 50 level after remaining in the overbought readings.

Major Support Level – $13.00

Major Resistance Level – $13.80

 

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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