Ethereum Price Technical Analysis – ETH/USD Short-term Correction

Key Highlights

• ETH price started a short-term correction after trading as high as $313.05 against the US Dollar.
• There was a break below two bullish trend lines with support at $310 and $305 on the hourly chart of ETH/USD (data feed via SimpleFX).
• The price is now trading close to the 100 hourly simple moving average and remains supported above $298.50.

Ethereum price is correcting lower against the US Dollar and Bitcoin. ETH/USD is approaching a major support area near $298 where buyers would emerge.

Ethereum Price Support

There were decent gains in ETH price above the $300 level against the US Dollar. The price traded above the $310 level and formed a high at $313.05. Later, a correction wave was initiated and the price moved below the 23.6% Fib retracement level of the last leg from the $285.20 low to $313.05 high. However, the recent wave got extended as the price moved below the $306 level.

At the moment, the price is trading below the 38.2% Fib retracement level of the last leg from the $285.20 low to $313.05 high. Sellers succeeded in breaking two bullish trend lines with support at $310 and $305 on the hourly chart of ETH/USD. It seems like the price might correct further and could even test the $298-299 support area. The 50% Fib retracement level of the last leg from the $285.20 low to $313.05 high is also near $299.14.

At present, the pair is trading near the 100 hourly simple moving average and struggling to remain above $301. There is a chance of a dip towards $298-296 where buyers should protect more declines. Any further declines would be a bearish sign for a move towards the next important support at $291.

Hourly MACD – The MACD has moved back in the bearish zone.

Hourly RSI – The RSI is reaching the oversold levels.

Major Support Level – $298

Major Resistance Level – $306

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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