Ethereum Price Analysis: ETH/USD Faces Tough Challenge
- ETH price crashed and declined toward the $440 level recently against the US Dollar.
- There is a declining channel in place with resistance near the $480 level on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently correcting higher and it may head towards the $490 and $500 resistance resistances.
Ethereum price extended declines against the US Dollar and Bitcoin. ETH/USD may correct higher, but it is facing tough challenges near the $490 level.
Ethereum Price Resistance
Yesterday, there was a nasty downside move in ETH price below the $500 level against the US Dollar. The price declined below the $480, $460 and $450 support levels. A low was formed at $446 before buyers appeared. At the moment, the price is correcting higher and it has moved above the $460 level. There was also a break above the 23.6% fib retracement level of the last decline from the $545 high to $446 low.
However, the price is facing a lot of challenges on the upside near the $490 and $500 levels. There is also a declining channel in place with resistance near the $480 level on the hourly chart of ETH/USD. Above the channel resistance, the next hurdle for buyers is near the $496 level. It represents the 50% fib retracement level of the last declinefrom the $545 high to $446 low. A break above the $496 resistance is needed for buyers to gain control and push the price above the $500 handle.
Looking at the chart, the price may correct higher above the $480 level in the short term. However, the $490-495 resistance zone may play a crucial role in the next move in ETH. On the downside, supports are seen near the $465 and $460 levels.
Hourly MACD – The MACD is showing signs of recovery in the bullish zone.
Hourly RSI – The RSI is moving higher and is currently placed near the 40 level.
Major Support Level – $460
Major Resistance Level – $495