Ethereum Price Technical Analysis – ETH/USD Might Extend Correction

Key Highlights

• ETH price after trading towards $323 against the US Dollar found sellers and slowly moving lower.
• There was a break below a connecting bullish trend line at $320 on the hourly chart of ETH/USD (data feed via SimpleFX).
• The pair might trade towards the $308 support and 100 hourly simple moving average.

Ethereum price is correcting lower against the US Dollar against Bitcoin. ETH/USD has to remain above $308 in order to bounce back.

Ethereum Price Support

There was a decent upside move in ETH price above the $321 level against the US Dollar. The price traded as high as $323.49 and slowly lost momentum. It started trading lower and moved below the $321 support. It failed around a bearish trend line at $322-323 on the hourly chart. During the downside move, there was a break below a connecting bullish trend line at $320 on the hourly chart of ETH/USD. It has cleared the path for a slight downside move towards $310-308 in the near term.

At the moment, the price is trading near the 23.6% Fib retracement level of the last wave from the $290.52 low to $323.49 high. It seems like the price might continue to trade lower and test the $308 support and 100 hourly simple moving average. The 100 hourly SMA is also positioned near the 50% Fib retracement level of the last wave from the $290.52 low to $323.49 high. It seems like downsides would be limited by $304. However, the price needs to gain momentum above $321 to overcome any major declines.

A break above the highlighted bearish trend line with current resistance at $319.50 is needed. Buying dips might be considered as long as the price is above $304.

Hourly MACD – The MACD is slowly moving into the bearish zone.

Hourly RSI – The RSI has breached the 50 level and could head south.

Major Support Level – $304

Major Resistance Level – $321

 

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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