Ethereum Price Technical Analysis – ETH/USD Break Looks Real

Key Highlights

• ETH price made a sharp downside move against the US Dollar, and broke the $9.80 support zone.
• Yesterday’s highlighted connecting bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was cleared to open the gates for more declines.
• There was a sharp decline in Bitcoin price due to the PBOC investigation announcement, which caused a decline in ETH too.

Ethereum price collapsed against the US Dollar due to a sharp selling in BTC after the PBOC investigation announcement. More losses to follow in ETH/USD?

Ethereum Price Declines

ETH price was seen holding the $10.05 support area against the US Dollar yesterday, but it could not hold for long. There was a sharp selling initiated in BTC price due the PBOC investigation announcement. It took ETH price down as well against the US Dollar. During the downside move, the price broke a couple of important support levels. First, yesterday’s highlighted connecting bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was cleared.

Second, there was a break below the 50% Fib retracement level of the last wave from the $9.40 low to $10.66 high. Later, the price also cleared another bullish trend line on the same chart at $9.88. So, we can say that there was a clear break in ETH/USD. The price traded as low as $9.15, which was close to the 1.236 extension of the last wave from the $9.40 low to $10.66 high.

The price is currently recovering, but the upside move looks unstable and without momentum. The broken support area at $10.05 is now resistance. An initial resistance could be around the $9.88 level where sellers may appear.

Hourly MACD – The MACD is now well in the bearish slope, calling for more losses.

Hourly RSI – The RSI is recovering from the oversold reading.

Major Support Level – $9.20

Major Resistance Level – $9.88

 

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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