Ethereum Price Weekly Analysis: Heavy Selling Rally
Ethereum price is under heavy selling pressure against the US Dollar and Bitcoin. Now ETH/USD might test the crucial support at $267.
- ETH price fell from the $393.56 high and currently remains under pressure against the US Dollar.
- The major contracting triangle pattern with resistance at $320 broke below and moved below $297 forming on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair is heading to test the $267 support floor and decide the next move from there.
It was a volatile week for ETH price as it traded towards the $400 level against the US Dollar. The price made a top near $394.29 and later started moving lower. Sellers gained control after the news of Chinese bitcoin exchanges ban rumors, and the price dropped below $325. A low was formed near $267 before a correction initiated and the price moved above the 38.2% Fib retracement level of the last decline from the $394.29 high to $267 low.
However, the upside move was protected by a major hurdle near $333. The 50% Fib retracement level of the last decline from the $393.56 high to $274.01 low is at $333 to act as a barrier. Moreover, the major contracting triangle pattern broke on downside below $297.7 support, which has now become a resistance.
The pair is again heading lower and currently moving to test the major support at $294. A break and close below $267 could take the pair back towards $235. On the upside, the $297-316 levels remains a major resistance zone. If you are looking to buy, you should wait for the price to get stable above $310 before entering into a trade.
4-hours MACD – The MACD is currently in the bearish zone.
4-hours RSI – The RSI is now well below the 50 level.
Major Support Level – $267.86
Major Resistance Level – $297
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 Trading View