Ethereum Price Technical Analysis – ETH/USD Decline Initiated

Key Highlights

• ETH price remained in a downside category with support at $18.18 against the US Dollar.
• There is a bearish trend line with resistance at $18.70 formed on the hourly chart of ETH/USD (data feed via SimpleFX).
• There is a chance that the price may extend the downside leg and trade below $18.18.

Ethereum price failed to hold the $19.05 support against the US Dollar, increasing the risk of more losses in ETH/USD in the short term.

Ethereum Price Next Leg Lower?

Yesterday, we discussed how ETH price may be heading lower vs the US Dollar due to a break below $19.50. The price did trade lower, and managed to break the $19.05 support as well. The most important break was below $18.79, representing the 61.8% Fib retracement level of the recent move from the $18.05 low to $19.99 high. It increased the bearish pressure, and the price was seen trading below $18.50.

There was even a proper close below the 100 simple moving average at $19.09. These all are negative sign. It looks like the price is set to test the recent low of $18.18. And, if there is an increase in the bearish pressure, the price could even break it for a move towards $18.00. On the upside, there is a bearish trend line with resistance at $18.70 formed on the hourly chart (ETH/USD, data feed via SimpleFX). It also coincides with the 23.6% Fib retracement level of the last drop from the $20.03 high to $18.18 low.

So, if the price corrects higher it may face sellers near the trend line resistance at $18.60. Furthermore, the 100 hourly SMA is also a hurdle on the upside near $19.08 for the ETH buyers.

Hourly MACD – The MACD is now in the bearish zone, suggesting a decline.

Hourly RSI – The RSI is heading lower, and remains well below the 50 level.

Major Support Level – $18.00

Major Resistance Level – $19.60

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.

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