- Ethereum price after trading a few points higher struggled to retain traction and moved down.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD acted as a resistance and pushed the price down.
- There is a chance of the price moving down below the recent low of $8.50 and test the $8.25 area.
Ethereum price is looking negative for today. If the trend line resistance holds, ETH/USD may move down and trade near $8.25.
Ethereum Price – Sell Near Trend Line
Ethereum price ETH managed to move higher once again yesterday, but faced offers near the $9.10-20 resistance area. Yesterday, I highlighted a bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD, and suggested a buy if the price moves above it. There was no upside break, but on the other hand, the price moved down after testing trend line resistance.
The most important point is that ETH failed near the 50% Fib retracement level of the last drop from the $10.00 high to $8.50 low. So, we can say that a correction wave is now over and there is a chance of a new low below the $8.50 level, which can be near $8.25. The price is now below the 100 hourly simple moving average, which is a bearish sign in the short term.
One may consider selling near the trend line resistance area with a target of $8.50 and then $8.25. A stop in the stated case may be an hourly close above the 100 SMA or above the highlighted trend line.
Hourly MACD – The MACD is strongly placed in the bearish area, which is calling for more losses.
Hourly RSI – The RSI is below the 50 level, which is sign that ETH buyers are struggling to gain to gain momentum.
Intraday Support Level – $8.50
Intraday Resistance Level – $9.00
Charts courtesy of Kraken via Trading View