Key Highlights
- ETH price fell sharply and broke a major support near $475-478 against the US Dollar.
- Yesterday’s highlighted important bullish trend line was breached with support at $476 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now trading well below the $475 support and the 100 hourly simple moving average.
Ethereum price made a sharp downside move against the US Dollar and Bitcoin. ETH/USD may decline further if sellers remain in control below $475.
Ethereum Price Drop
A new correction wave was started from the $496 high in ETH price against the US Dollar. The ETH/USD pair failed to hold important support levels near $475, which opened the door for more losses. It declined sharply and settled below the $475 support and the 100 hourly simple moving average. During the decline, there was a break below the 61.8% Fib retracement level of the last leg from the $451 low to $496 high.
More importantly, yesterday’s highlighted important bullish trend line was breached with support at $476 on the hourly chart of ETH/USD. It seems like the recent break below the trend line, 100 SMA and $475 has pushed the price back in a bearish zone. At the moment, the price is trading near the 76.4% Fib retracement level of the last leg from the $451 low to $496 high. A break below the $460 support zone could accelerate declines back towards the $450 support. Any further declines below $450 may perhaps put a lot of pressure on buyers.
Looking at the chart, the price turned red and it could decline further below $460. If there is an upside move, the price is likely to face sellers near $475 and the 100 hourly SMA. An immediate resistance is at $470, which is also a pivot level.
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI – The RSI is now near the oversold levels with many negative signs.
Major Support Level – $450
Major Resistance Level – $475
