Ethereum Price Technical Analysis – ETH/USD To Decline Further

Key Highlights

• ETH price started a correction after trading as high as $10.84 against the US Dollar.
• There is a bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is pushing the price down with resistance near $10.55.
• The pair has also moved below the 100 hourly simple moving average at $10.54, which is a bearish sign.

Ethereum price started a substantial correction yesterday against the US Dollar, and it looks like ETH/USD may trade towards $10.20 in the short term.

Ethereum Price Correction

Yesterday, I highlighted the start of a correction in ETH price against the US Dollar after a high was formed near $10.84. There was a decline initiated, taking the price below the 23.6% Fib retracement level of the last wave from the $9.57 low to $10.84 high. It was the first signal that the price may decline further. It moved down, and traded close to the 38.2% Fib level of the same fin wave.

The worst part was the close below the 100 hourly simple moving average at $10.54. It may now put more bearish pressure, and ignite further losses. If the current market sentiment stays intact, there is a chance of a move towards $10.20. The stated level also coincides with the 50% Fib retracement level of the last leg higher from the $9.57 low to $10.84 high.

On the upside, there is a major resistance near $10.55, as a bearish trend line is positioned on the hourly chart (data feed via SimpleFX) of ETH/USD. Moreover, the 100 hourly SMA is also aligned. So, we can say if the price moves higher, it may face sellers near $10.55.

Hourly MACD – The MACD is still in the bearish zone with no sign of an upside move.

Hourly RSI – The RSI is well below the 50 level, which is a negative sign.

Major Support Level – $10.20

Major Resistance Level – $10.55

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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