- Ethereum price moved sharply down this past week and my forecasted target of the $8.0 level was tested.
- I was looking for a target of $8.00 for a suggested sell trade, which was achieved successfully.
- There are a couple of bearish trend lines formed on the hourly chart (data feed via Kraken) of ETH/USD, which may now act as a resistance in the near term.
Ethereum price tumbled recently, and traded towards $8.0. It was a perfect sell, and it looks like the bulls may be exhausted.
Ethereum Price Downside Move
Ethereum price ETH was down and out, as there was a sharp downside move towards the $8.00 support area. I mentioned in my previous analysis that there is a chance of a decline in ETH/USD due to the technical indicators. It was a perfect sell, and the final target of $8.0 was achieved.
There was a bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD, which acted as a perfect catalyst for a decline. The price traded below $8.0, and a new low of $7.34 was created. There is now another bearish trend line formed, which can act as an immediate resistance area. Moreover, the 38.2% Fib retracement level of the last drop from the $11.60 high to $7.34 low is also positioned around the trend line to increase its importance.
There is a chance of a recovery towards $9.50, so if you are looking for a sell, then I would suggest to wait until there is a completion of a correction. On the downside, the $8.00 level may act as a support area.
Hourly MACD – The MACD may change the slope to the bullish area, which is a sign of a correction.
Hourly RSI – The RSI is around the oversold area, which may push ETH/USD price a bit higher.
Intraday Support Level – $8.00
Intraday Resistance Level – $9.50
Charts courtesy of Kraken via Trading View