Ethereum Price Weekly Analysis – ETH Poised For Correction

Key Highlights

  • Ethereum price traded close to the $12.70 level this past week against the US Dollar, but found sellers.
  • There is a monster bearish trend line formed on the daily chart of the ETH/USD pair (data feed via SimpleFX), which acted as a barrier for an upside move.
  • The price is also below the 100-day simple moving average, which is not a good sign for the ETH bulls.

Ethereum price is struggling to break a major hurdle on the daily chart versus the US Dollar, which poses a threat of a short-term downside move.

Ethereum Price Correction

Ethereum price ETH managed to spike towards the $12.70 level during the start of this past week against the US Dollar. There were offers presented around the stated level, and the price moved down. Another reason was a monster bearish trend line formed on the daily chart of the ETH/USD pair (data feed via SimpleFX). It acted as a perfect resistance for ETH and stopped upside move.

The last but not the least, the 100-day simple moving average was also around the same bearish trend line. So, we can say the recent failure around the $12.70 level was crucial and may ignite a short-term correction. The ETH/USD pair already tested the 23.6% Fib retracement level of the last leg from the $7.09 low to $12.76 high. So, there is a chance of a move towards the 38.2% Fib retracement level of the last leg from the $7.09 low to $12.76 high.

Ethereum Price Weekly Analysis

Ethereum Price Weekly Analysis

In my opinion, the pair may correct lower in the short term, but remains supported on the downside. The only thing the bulls need is a close above the highlighted trend line resistance on the daily chart.

Daily MACD – The MACD has moved into the bullish zone, which is a positive sign.

Daily RSI – The RSI is just around the 50 level, but may slide down in the short term.

Major Support Level – $11.00

Major Resistance Level – $12.60

 

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.

<!–

–>