Key Highlights
- ETH price remained in the bearish trend and declined below $240 against the US Dollar.
- There is a monster bearish trend line forming with resistance at $248 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The price might correct a few points from the current levels, but upsides remain capped near $250-260.
Ethereum price is under heavy selling pressure against the US Dollar and Bitcoin. ETH/USD might decline further and could even test $210.
Ethereum Price Resistance and Upside Hurdles
There were further declines in ETH price as it moved below the $260 and $250 support levels against the US Dollar. Yesterday, there was a minor correction from the $260 level towards $280. However, the upside move was capped and buyers failed to break the $280 resistance area. The price declined and traded below $260 to form a new monthly low. The decline was such that the price even failed to hold the $240-230 support area and traded to a new low at $221.42.
At the moment, the price is correcting from $221. It moved above the 23.6% Fib retracement level of the last decline from the $281.31 high to $221.42 low. However, there is a monster bearish trend line forming with resistance at $248 on the hourly chart of ETH/USD. The trend line resistance is also near the 38.2% Fib retracement level of the last decline from the $281.31 high to $221.42 low. Therefore, a break above the trend line resistance at $250 won’t be easy.
If the current bearish pressure remains intact, there is a chance of a break below $220. The price might even test the $210-200 support zone where sellers could struggle.
Hourly MACD – The MACD is strongly placed in the bearish zone.
Hourly RSI – The RSI is currently well below the 50 level and showing bearish signs.
Major Support Level – $220
Major Resistance Level – $260
Charts courtesy – SimpleFX
