Ethereum Price Technical Analysis: Selloff Brewing
Ethereum price remained under a major resistance trend line against the US Dollar, and it looks like ETH/USD may continue to face sellers on the upside.
- ETH price after trading a few points higher found resistance and traded lower.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD is acting as a perfect barrier for an upside move.
- A break above it is needed for the ETH buyers to take control and push the price higher.
Ethereum Price hurdle
I have been tracking a monster bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD. It acted as a resistance on many occasions, and the recent failures were also around the same trend line. Yesterday, the price traded towards the 50% Fib retracement level of the decline from the $10.63 high to $9.44 low, but failed to gain traction.
The same trend line along with the stated fib level acted as a hurdle for the ETH buyers and prevented an upside move. The price recently failed near the trend line and moved below the 50% Fib retracement level of the wave from the $9.44 low to $10.23 high. So, there is a high risk of the ETH trading further lower. The next support on the downside is around the 76.4% Fib retracement level of $9.44 to $10.23. It can be clearly seen from the charts that the price is under pressure, and how the trend line holds the key.
If the ETH buyers need to start a recovery, they need to clear the highlighted resistance. Otherwise, the price may continue to decline and the next stop could be $9.40.
Hourly MACD – The MACD is back in the bearish zone.
Hourly RSI – The RSI is attempting to recover from the oversold area, but remains below the neutral level.
Major Support Level – $9.63
Major Resistance Level – $9.90
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Charts courtesy of SimpleFX
Image from buzzle.com