Ethereum Price Technical Analysis – ETH/USD To Correct Further

Key Highlights

• There was a sharp decline in ETH price below $280 against the US Dollar before finding support at $256.
• There is a bearish trend line with resistance at $338 formed on the hourly chart of ETH/USD (data feed via SimpleFX).
• The pair may continue to correct lower as long as there is no close above the $350 level.

Ethereum price correction looks real against the US Dollar and Bitcoin, and ETH/USD may continue to move up and down towards $300 for some time.

Ethereum Price Support

In yesterday’s analysis, we saw a major decline in ETH price below $360 against the US Dollar. The price broke a cluster of bullish trend lines with supports at $360, $350, $325 and $310. The decline was such that the price even broke the $300 handle and traded towards $260. A new low was formed at $256 from where a recovery was started. The price moved above the 23.6% Fib retracement level of the last decline from the $389 high to $256 low.

However, the upside move remains capped by $335-340. There is a bearish trend line with resistance at $338 formed on the hourly chart of ETH/USD. It already failed to break the 61.8% Fib retracement level of the last decline from the $389 high to $256 low. Above the bearish trend line, the 100 hourly simple moving average at $350 is positioned. So, we can say there are many resistances on the way up near $$330 and $350. Any movement towards $340 may face selling pressure.

It looks like the price may continue to correct lower in 2-3 waves. On the downside, the $300 handle and then $360 support may play a major role in the near term.

Hourly MACD – The MACD is now flat and signaling correction pattern.

Hourly RSI – The RSI is moving just near the 50 level.

Major Support Level – $260

Major Resistance Level – $340

 

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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