Ethereum Price Weekly Analysis – ETH/USD Not out of Woods

October 22, 2017

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Key Highlights

ETH price is holding a monster support area near $280.00 against the US Dollar.
There is a short-term bearish trend line forming with resistance at $301 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
The pair has to break the $301 resistance the 100 simple moving average (H4) to gain momentum.

Ethereum price is neutral against the US Dollar, but under a lot of pressure against Bitcoin. ETH/USD needs to hold $280 to avoid more declines.

Ethereum Price Support

This past week, there was an upside move in ETH price above the $325 level against the US Dollar. However, the price failed to hold gains and moved back below the $300 handle. The price recently traded as low as $286.43 where it found a strong support. The mentioned $285-280 support area holds a lot of significance. It prevented declines on many occasions and likely to continue acting as a barrier for sellers.

If there is a break and close below $280, the price might come under a lot of selling pressure. However, the mentioned case is very unlikely at the moment. It should hold the $280 area and remain in either neutral zone or move higher. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the $350.52 high to $286.43 low. However, the main hurdle is near $310.95 and the 100 simple moving average (H4). It also represents the 38.2% Fib retracement level of the last decline from the $350.52 high to $286.43 low.

Therefore, a proper break above $301 and then $311 is needed for a move towards $330 or higher. On the downside, the $280 level remains a key barrier for more declines.

4-hours MACD – The MACD is still in the bearish zone.

4-hours RSI – The RSI is currently well below the 50 level.

Major Support Level – $280

Major Resistance Level – $301

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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