Key Highlights
- ETH price started a major downside correction below the $500 level against the US Dollar.
- This week’s highlighted key bullish trend line was breached with support at $485 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently trading near the $470 support and the 100 hourly simple moving average.
Ethereum price trimmed most of its gains against the US Dollar and Bitcoin. ETH/USD must stay above the 100 hourly SMA to avoid a push to $455.
Ethereum Price Support
There was a decent upside move above the $500 level in ETH price against the US Dollar. The ETH/USD pair traded as high as $517 before sellers appeared. The price started a solid downside correction and moved below the $500 and $490 support levels. During the decline the price cleared the 50% Fib retracement level of the last leg from the $465 low to $517 high.
It opened the doors for more declines and the price broke the $485 support. Moreover, this week’s highlighted key bullish trend line was breached with support at $485 on the hourly chart of ETH/USD. The pair is currently trading near the $470 support and the 100 hourly simple moving average. However, it has surpassed the 76.4% Fib retracement level of the last leg from the $465 low to $517 high. It indicates that there are high chances that the price could decline towards the $465 low in the near term. Below this, the next support is near the $455 level, which was a resistance earlier.
Looking at the chart, the price must hold the $470 support and the 100 hourly SMA. If it recovers, the previous support near the $482-485 zone is likely to act as a resistance. Above this, the price will most likely break the $500 level and resume its uptrend.
Hourly MACD – The MACD is placed heavily in the bearish zone.
Hourly RSI – The RSI is currently well above the 50 level.
Major Support Level – $470
Major Resistance Level – $485
