Ethereum Price Technical Analysis: Break Down
Ethereum price fell sharply earlier today against the US Dollar, and the ETH/USD pair broke a major support trend line at $49.90.
- ETH price after trading towards the $52.40 level against the US Dollar failed, and moved down.
- Yesterday’s highlighted connecting bullish trend line with support at $49.90 on the hourly chart (ETH/USD, data feed via SimpleFX) was broken.
- The price traded sharply lower towards $47.40 before starting a pullback.
Ethereum Price Bearish or Correction?
Yesterday, we saw a nice bullish wave in ETH price towards $52 against the US Dollar. The price traded as high as $52.40 where it faced resistance and started trading lower. Later, the downside move was accelerated, as the price broke down, and surpassed the $49 support. It also broke the 61.8% Fib retracement level of the last wave from the $47.10 low to $52.42 high. Moreover, it cleared yesterday’s highlighted connecting bullish trend line with support at $49.90 on the hourly chart.
It opened the doors for more losses, as the price traded towards the last low of $47.10. It just managed to hold the $47.40, and started moving back higher. It recovered above the 23.6% Fib retracement level of the last decline from the $52.40 high to $47.40 low. However, the upside recovery failed near the broken trend line around $50.00. Also, the 100 hourly simple moving average along with the 61.8% Fib retracement level of the last decline from the $52.40 high to $47.40 low acted as a resistance.
The price is clearly struggling to clear the 100 hourly simple moving average and $50. So, there is a chance of it moving down once again towards the $48 level in the near term.
Hourly MACD – The MACD is extending moves in the bearish zone.
Hourly RSI – The RSI is in the bearish zone, and struggling to move higher.
Major Support Level – $48.00
Major Resistance Level – $50.50
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. Altcoin Today does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
Charts courtesy of SimpleFX