Ethereum Price Technical Analysis – ETH/USD Correction Underway

Key Highlights

• There were further gains in ETH price, as it moved above the $175 level against the US Dollar before starting a correction.
• There was a break below a bullish trend line at $159 on the hourly chart (ETH/USD, data feed via SimpleFX).
• The price is currently below the $158 resistance, and may extend the correction.

Ethereum price overcame sellers against the US Dollar and Bitcoin, and now ETH/USD is forming a short-term correction pattern below $158.

Ethereum Price Trend Line Break

Yesterday, I mentioned that ETH price remains bullish any may spike towards $160 or even $175 against the US Dollar. The price moved higher and traded above $175 to establish a new high at $182.03. Later, the price started a correction, and moved below the $165 support. To initiate the downside, there was a break below the 23.6% Fib retracement level of the last wave from the $122.35 low to $182.03 high.

However, the most important move was a break below a bullish trend line at $159 on the hourly chart of ETH/USD. The downside move was such that the price also broke the 50% Fib retracement level of the last wave from the $122.35 low to $182.03 high. It traded below $150 and formed a low at $136.43. The stated low represents the 76.4% Fib retracement level of the last wave from the $122.35 low to $182.03 high.

The price bounced back sharply, and currently above $145. There can be a few swing moves, but on the upside, there is a trend line resistance at $158. As long as the price is below $158-160, there can be another dip in the short term. On the downside, the $140 and $135 levels are decent supports.

Hourly MACD – The MACD has reduced all its bullish slope.

Hourly RSI – The RSI is just below the 50 level, and remains flat.

Major Support Level – $140.00

Major Resistance Level – $158.00

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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