Ethereum Price Technical Analysis – ETH/USD Break Down Real?

Key Highlights

  • The ETH price short-term bearish bias got traction as it moved below the $335 support against the US Dollar.
  • This week’s important contracting triangle pattern with support at $330-335 on the hourly chart of ETH/USD (data feed via SimpleFX) was clearly broken.
  • The pair is currently correcting higher, but may face sellers near 100 hourly simple moving average and $335.

Ethereum price failed to hold the short-term bullish bias against the US Dollar and Bitcoin, and now ETH/USD remains at risk of more losses towards $275.

Ethereum Price Decline

We followed a crucial contracting triangle pattern with support at $330-335 for ETH price against the US Dollar. The price was struggling to hold the $330 support yesterday. It looks like sellers won a huge battle and took the price below $330. There was a clear break and close below the contracting triangle at $330, which ignited a sharp downside move. The price moved below the 50% Fib retracement level of the last wave from the $256 low to $375 high.

It traded as low as $288 where buyers appeared. The price is currently correcting higher and moved above the 23.6% Fib retracement level of the last decline from the $365 high to $288 low. However, the broken trend line support at $330 on the upside may act as a major hurdle. It also coincides with the 100 hourly simple moving average at $335. An initial resistance is near the 50% Fib retracement level of the last decline from the $365 high to $288 low.

Ethereum Price Technical Analysis ETH USD

So, if the price corrects higher from the current levels, it may face sellers near $335 or $340. On the downside, there is a chance of ETH retesting the $300-285 support zone.

Hourly MACD – The MACD is now well placed in the bearish zone.

Hourly RSI – The RSI is attempting to move back above the 50 level.

Major Support Level – $300

Major Resistance Level – $340

Charts courtesy – SimpleFX

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. NewsBTC 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

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