- ETH price is facing selling pressure and already moved below the $330 support against the US Dollar.
- The ETH/USD pair is currently attempting a downside break below a crucial triangle at $285 on the 4-hours chart (data feed via SimpleFX).
- A break below it could ignite further losses towards the $240 level in the near term.
Ethereum price is short-term bearish against the US Dollar and Bitcoin, and ETH/USD is testing a major support area at $285 which holds the key.
Ethereum Price Downside Break?
It was a slight negative week for ETH price as it moved below the $350 and $330 support levels against the US Dollar. The price faced a lot of selling pressure and also traded below $328 and the 100 simple moving average (H4). There was a bearish wave pattern which started from $256 and ended near $375. The price is now once again under selling pressure and testing a major support at $285.
Once there is a close below the $285 support, it exposes the price for further declines in the near term. There is a crucial contracting triangle pattern forming with support at $285 on the 4-hours chart of ETH/USD. If buyers fail to protect losses below the same, there is a chance of ETH retesting $256. Moreover, if there is an increase in selling pressure, there can be a test of the $228 level as well. It represents the 1.236 extension of the last wave from the $256 low to $375 high.
On the upside, the $320 and $330 levels are resistances. Furthermore, the 100 SMA (H4) might also act as a hurdle near $328. If there is a correction, the price may struggle near $328-330 and move down once again.
4-hours MACD – The MACD is placed in the bearish zone.
4-hours RSI – The RSI is currently into the oversold area.
Major Support Level – $285.00
Major Resistance Level – $330.00
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.
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