Ethereum Price Technical Analysis – ETH/USD To Decline Further

Key Highlights

• ETH price traded below the $260 support area against the US Dollar before finding bids near $255.
• There is an ascending channel forming with support at $274 on the hourly chart of ETH/USD (data feed via SimpleFX).
• The price might break the channel support and decline once again towards $260.

Ethereum price remains in the bearish zone against the US Dollar and Bitcoin. ETH/USD might complete correction and move lower once again towards $260-255.

Ethereum Price Correction

There was no major correction in ETH price yesterday as it failed to remain above the $290 level against the US Dollar. The price started a correction from the $280 level and formed an ascending channel on the hourly chart. It corrected above the $310 level, but failed near $315. After the failure, the price started declining once again and broke the channel support at $297. There was a sharp decline in ETH and the price even broke the $270 and $260 support levels.

A low was formed near $255.54 from where the price is currently correcting. It has moved above the 23.6% Fib retracement level of the last decline from the $315.21 high to $255.54 low. There is also an ascending channel forming with support at $274 on the hourly chart of ETH/USD. The pair is currently struggling to clear the 38.2% Fib retracement level of the last decline from the $315.21 high to $255.54 low.

Therefore, there is a chance that ETH would break the channel support at $274. Once the price $274, it could trade back towards $260 or even $255. On the upside, a break above $290 and the 100 hourly simple moving average is needed for more gains.

Hourly MACD – The MACD is still placed well in the bearish zone.

Hourly RSI – The RSI is retreating from the 50 level and heading lower.

Major Support Level – $260

Major Resistance Level – $290

 

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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