Ethereum Price Technical Analysis – ETH/USD Correction Initiated

Key Highlights

• ETH price after making a top near the $11.40 level against the US Dollar started trading lower.
• Yesterday’s highlighted connecting bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was broken.
• The price closed below the $10.00 handle and looks set for more declines in the near term.

Ethereum price looks like found barriers on the upside against the US Dollar and Bitcoin. ETH/USD broke a support area at $10.20 and currently trading lower.

Ethereum Price Downside

We saw recently an upside surged in ETH price against the US Dollar, as it traded above the $11.00 handle. However, the price later found sellers near $11.40, and started correcting lower. During the downside move the price initially broke the 23.6% Fib retracement level of the last wave from the $9.13 low to $11.40 high. Later, it continued to trade lower and broke other supports as well.

The most important was a close below yesterday’s highlighted connecting bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD. Moreover, the price also traded below the last swing low of $9.13 to trade as low as $9.09. It is currently moving back higher, but found sellers near the 50% Fib retracement level of the last drop from the $11.41 high to $9.09 low. There are chances that the price may once again head lower, and trade towards the last swing low of $9.10.

Overall, it looks like the price has made a short-term top, and may move down. The most important support is around the 100 hourly simple moving average, which is positioned near $9.00. As long as the price stays above it, there is a possibility of a bounce back.

Hourly MACD – The MACD is now back in the bearish zone, but slowing reducing slope.

Hourly RSI – The RSI has closed below the 50 level, which is a negative sign.

Major Support Level – $9.10

Major Resistance Level – $10.25

 

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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