Ethereum Price Technical Analysis – ETH/USD Downside Break?

Key Highlights

• ETH price after trading as high as $263 found sellers against the US Dollar and moved down.
• There was a major connecting bullish trend line with support at $248.50 on the hourly chart of ETH/USD (data feed via SimpleFX), which was broken recently.
• The pair is attempting a close below the 100 hourly simple moving average and $245.

Ethereum price traded slightly lower against the US Dollar and Bitcoin, and ETH/USD broke a major trend line support for a move below $245.

Ethereum Price Could Trade Towards $229?

Yesterday, we thought that ETH price could test the 1.236 extension of the last decline from the $263 high to $245 low against the US Dollar. However, the price failed to move above the last swing high as $263 and moved down. There was no test of the $268.10 resistance, which is a short-term bearish sign. The price started a downside move, and broke the 23.6% fib retracement level of the last wave from the $208 low to $263 high.

It prompted further declines, and the price moved below $250. During the downside, there was a break below a major connecting bullish trend line with support at $248.50 on the hourly chart of ETH/USD. It is a strong bearish sign in the short term with a close below $250. At the moment, the pair is attempting a close below the 100 hourly simple moving average and $245.

If sellers succeed in settling the price below $240, there can be a decline towards $230.229. The stated levels coincide with the 61.8% fib retracement level of the last wave from the $208 low to $263 high. In the short-term, there can be declines towards $230 and $220, and buyers need to be careful.

Hourly MACD – The MACD has moved into the bearish zone.

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

Major Support Level – $240

Major Resistance Level – $255

 

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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