Ethereum Price Technical Analysis – ETH/USD Trend Change?

Key Highlights

• ETH price struggled and breached the $49.80 support area against the US Dollar.
• Yesterday’s highlighted bullish trend line with support at $49.90 was broken on the hourly chart (ETH/USD, data feed via SimpleFX).
• On the upside, the connecting bearish trend line is acting as a strong resistance near $49.80.

Ethereum price moved down below $49.80 against the US Dollar, and now ETH/USD looks poised to extend the decline in the short term.

Ethereum Price Resistance

There was a slight increase in the bearish pressure on ETH price, as it moved below $50.20 against the US Dollar. The price struggled and extended losses below $50. The most important break was below yesterday’s highlighted bullish trend line with support at $49.90 on the hourly chart (ETH/USD, data feed via SimpleFX). It prompted a move below the 38.2% Fib retracement level of the last wave from the $42.10 low to $53.69 high.

Later, the price traded close to the $48 handle and moved with a bearish structure. However, the 50% Fib retracement level of the last wave from the $42.10 low to $53.69 high managed to hold the downside. A major point to note here is the fact that the 100 hourly simple moving average is ignored near $48.80. The price is flirting with it and there is no close. On the upside, yesterday’s pointed connecting bearish trend line is now proving to be a strong resistance near $49. If the price continues to move higher, it could face sellers near $49.60.

On the downside, a close below $48 could be a negative sign and might prompt more declines. The next support would be near the 61.8% Fib retracement level of the last wave from the $42.10 low to $53.69 high at $46.50.

Hourly MACD – The MACD is back in the bearish zone.

Hourly RSI – The RSI is struggling to move back above the 50 level.

Major Support Level – $48.00

Major Resistance Level – $49.60

 

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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