Key Highlights
- ETH price after correcting towards $315 against the US Dollar faced resistance and started declining once again.
- There was a break below a bullish trend line with support at $297 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price has breached the last swing low of $281, which is a bearish sign in the short term.
Ethereum price failed to hold gains and momentum against the US Dollar and Bitcoin. ETH/USD is now below $290 and eyeing further declines.
Ethereum Price Decline
Yesterday, we saw how there was a decent bounce back in ETH price towards the $315 level against the US Dollar. The price traded as high as $315.14 and later faced heavy offers. The price failed to move above $317 and a bearish trend line on the hourly chart of ETH/USD. A new bearish wave was initiated from $315.14 and the pair moved below the $306 support area.
The recent decline is disappointing and shows that the last wave up to $315 was only a correction. At the moment, the price is trading well below the 100 hourly simple moving average and $290. During the downside move, there was a break below a bullish trend line with support at $297 on the hourly chart. The most important point is the fact that the price broke the last low of $281. It is a sign of more declines below $280 in the near term.
On the upside, an initial resistance is around the 23.6% Fib retracement level of the last wave from the $315.14 high to $279.38 low. It looks like the price might extend declines below $279 and could even test $270. Clearly, the price is struggling and remains in the bearish zone below $290.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI – The RSI has reached the oversold readings.
Major Support Level – $270
Major Resistance Level – $288
Charts courtesy – SimpleFX
