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Ethereum Price Technical Analysis: Selloff Brewing

 

selloff-curve

Ethereum price remained under a major resistance trend line against the US Dollar, and it looks like ETH/USD may continue to face sellers on the upside.

Key Highlights

  • ETH price after trading a few points higher found resistance and traded lower.
  • Yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD is acting as a perfect barrier for an upside move.
  • A break above it is needed for the ETH buyers to take control and push the price higher.

 

Ethereum Price hurdle

I have been tracking a monster bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD. It acted as a resistance on many occasions, and the recent failures were also around the same trend line. Yesterday, the price traded towards the 50% Fib retracement level of the decline from the $10.63 high to $9.44 low, but failed to gain traction.

ethereum-price-november-15th-2016-analysis

The same trend line along with the stated fib level acted as a hurdle for the ETH buyers and prevented an upside move. The price recently failed near the trend line and moved below the 50% Fib retracement level of the wave from the $9.44 low to $10.23 high. So, there is a high risk of the ETH trading further lower. The next support on the downside is around the 76.4% Fib retracement level of $9.44 to $10.23. It can be clearly seen from the charts that the price is under pressure, and how the trend line holds the key.

If the ETH buyers need to start a recovery, they need to clear the highlighted resistance. Otherwise, the price may continue to decline and the next stop could be $9.40.

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

Hourly RSI – The RSI is attempting to recover from the oversold area, but remains below the neutral level.

Major Support Level – $9.63

Major Resistance Level – $9.90

 

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.

 

 

Source: NewsBTC

Charts courtesy of SimpleFX

Image from buzzle.com

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