Key Highlights
- ETH price extended declines and dropped below the $260 support zone against the US Dollar.
- Yesterday’s highlighted crucial bearish trend line is intact with resistance at $305 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may well correct a few points higher towards $277-280, but it is likely to face sellers.
Ethereum price dropped significantly against the US Dollar and bitcoin. ETH/USD is likely to decline further below $250 in the near term.
Ethereum Price Decline
There was no recovery in ETH price above the $320 level against the US Dollar. The ETH/USD pair faced an increased selling pressure and declined below the $300 and $280 support levels. The decline was such that the price tumbled below the $260 support as well. A new monthly low was formed at $249 and the price is currently consolidating losses.
An initial resistance is the 23.6% Fib retracement level of the last drop from the $322 high to $249 low. However, any major upsides are likely to face a strong barrier near the $277-280 zone. More importantly, yesterday’s highlighted crucial bearish trend line is intact with resistance at $305 on the hourly chart of ETH/USD. An intermediate resistance is the 50% Fib retracement level of the last drop from the $322 high to $249 low is near $286. Therefore, if the price corrects higher, it is likely to face sellers near the $277, $280 and $286 levels.
Looking at the chart, ETH price is under a lot of selling pressure below $285 and the 100 hourly simple moving average. On the downside, the $250 support zone is very important. If it fails to hold losses, the next support is near the $220 level. Below this, the last important support for buyers is at $200 and $205.
Hourly MACD – The MACD is placed heavily in the bearish zone.
Hourly RSI – The RSI is attempting a recovery from the extreme oversold conditions.
Major Support Level – $250
Major Resistance Level – $286
