Ethereum Price Technical Analysis: Correction Wave Halts Gains
Ethereum price failed to gain momentum against the US Dollar, and failed near $7.20. More losses are likely in ETH/USD moving ahead?
- ETH price started a correction wave yesterday against the US Dollar, but it looks it failed to gain traction.
- There is a new minor bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is currently acting as a resistance.
- The price is back trading near the last swing low of $6.87, and remains at risk.
Ethereum Price Decline
Yesterday, there was a correction wave initiated in ETH price against the US Dollar. However, it looks like the price failed to make a substantial move and failed near $7.20. It was a crucial resistance, as highlighted in yesterday’s post. The ETH/USD pair failed to break it and found sellers near 38.2% Fib retracement level of the last decline from the $7.82 high to $6.83 low.
As a result, a downside move was initiated. The decline was such that the price settled below the 100 hourly simple moving average. Now, there is a new minor bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD. It is acting as a downside move catalyst in taking the price down. The price already attempted once to break the $6.90 level, but failed. Let us see if there can be a break moving ahead or not, which can ignite more losses.
On the upside, the 50% Fib retracement level of the last decline from the $7.19 high to $6.87 low is also a major resistance at $7.03. So, it won’t be easy for the ETH buyers to take the price back in the bullish or neutral zone.
Hourly MACD – The MACD is back in the bearish zone.
Hourly RSI – The RSI also moved below the 50 level, and testing the broken 50 level.
Major Support Level – $6.90
Major Resistance Level – $7.10
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Charts courtesy of SimpleFX