Key Highlights
- ETH price failed to gain momentum and broke the $300 support against the US Dollar.
- Yesterday’s highlighted connecting bullish trend line with support at $296 on the hourly chart of ETH/USD (data feed via SimpleFX) was broken.
- There is a new bearish trend line forming with current resistance at $294.50 on the same chart.
Ethereum price struggled to move further higher against the US Dollar and Bitcoin. ETH/USD is back below $300 and seems to be under bearish pressure.
Ethereum Price Resistance
Yesterday, we saw a nice upside move in ETH price above the $300 level against the US Dollar. The price traded as high as $311.45 before facing sellers and starting a downside move. The price came under pressure during the past sessions and moved below the 50% Fib retracement level of the last wave from the $285.20 low to $311.45 high. It opened the doors for more losses and the price is now trading below the $296 level. It broke a horizontal support at $295-296 to clear the path for more declines.
Moreover, yesterday’s highlighted connecting bullish trend line with support at $296 on the hourly chart of ETH/USD was cleared. During the downside move, sellers managed to push the price back below $290 and the 100 hourly simple moving average. These all are bearish signs since the price is now below $290. It traded as low as $284.03 and might correct in the short term.
An initial resistance is around the 23.6% Fib retracement level of the last drop from the $311.45 high to $284.03 low. However, the most important resistance is near the 100 hourly SMA and $296. It also represents the 38.2% Fib retracement level of the last drop from the $311.45 high to $284.03 low.
Hourly MACD – The MACD is now gaining strength in the bearish zone.
Hourly RSI – The RSI has reached the oversold levels.
Major Support Level – $285
Major Resistance Level – $296
Charts courtesy – SimpleFX
