- ETH price fell hard and traded below the $300 handle against the US Dollar.
- There are two bearish trend lines forming with resistance near $320 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price might correct higher, but likely to face sellers near $300, $320 and $330.
Ethereum price made a sharp downside move against the US Dollar and Bitcoin. ETH/USD is now bearish and looking to extend declines below $280.
Ethereum Price Decline
It was a bad day for ETH price as it tumbled below $300 against the US Dollar. The price started declining as soon as Chinese ban on ICOs news came out. Pairs like BTC/USD, BCH/USD and ETH/USD were crushed. Yesterday, I mentioned that one might consider trading with a break either above $355 or below $335. If you entered on a break below $335, you should now look to close with good $50+ point’s profit. The price recently traded as low as $274.01 and currently attempting a correction.
It is trading near the 23.6% Fib retracement level of the last drop from the $319.34 high to $274.01 low. There are two bearish trend lines forming with resistance near $320 on the hourly chart of ETH/USD. These trend lines are likely to act as a strong barrier for buyers near $320-330. An intermediate resistance is around the 50% Fib retracement level of the last drop from the $319.34 high to $274.01 low at $296.67.
If the price corrects higher, it is likely to face sellers near $295-300. On the downside, a break below the recent low of $274 would open the doors for a test of $260. Any further losses could take ETH towards $250.
Hourly MACD – The MACD is now placed well into the bearish zone.
Hourly RSI – The RSI is currently correcting, but remains well below the 50 level.
Major Support Level – $260
Major Resistance Level – $320
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.