Ethereum Price Technical Analysis – ETH/USD Completed Correction

Key Highlights

• ETH price after correcting towards $315 against the US Dollar faced resistance and started declining once again.
• There was a break below a bullish trend line with support at $297 on the hourly chart of ETH/USD (data feed via SimpleFX).
• The price has breached the last swing low of $281, which is a bearish sign in the short term.

Ethereum price failed to hold gains and momentum against the US Dollar and Bitcoin. ETH/USD is now below $290 and eyeing further declines.

Ethereum Price Decline

Yesterday, we saw how there was a decent bounce back in ETH price towards the $315 level against the US Dollar. The price traded as high as $315.14 and later faced heavy offers. The price failed to move above $317 and a bearish trend line on the hourly chart of ETH/USD. A new bearish wave was initiated from $315.14 and the pair moved below the $306 support area.

The recent decline is disappointing and shows that the last wave up to $315 was only a correction. At the moment, the price is trading well below the 100 hourly simple moving average and $290. During the downside move, there was a break below a bullish trend line with support at $297 on the hourly chart. The most important point is the fact that the price broke the last low of $281. It is a sign of more declines below $280 in the near term.

On the upside, an initial resistance is around the 23.6% Fib retracement level of the last wave from the $315.14 high to $279.38 low. It looks like the price might extend declines below $279 and could even test $270. Clearly, the price is struggling and remains in the bearish zone below $290.

Hourly MACD – The MACD is gaining pace in the bearish zone.

Hourly RSI – The RSI has reached the oversold readings.

Major Support Level – $270

Major Resistance Level – $288

 

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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