Key Highlights
- ETH price started a fresh correction wave after trading as high as $487 against the US Dollar.
- There is a key bullish trend line in place with support at $450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair has to move above the $465 and $468 resistance levels to resume its upside move.
Ethereum price is correcting lower against the US Dollar and Bitcoin. ETH/USD is holding an important support near $450 which holds the key in the near term.
Ethereum Price Support
Yesterday, there were further gains above $480 in ETH price against the US Dollar. The ETH/USD pair traded as high as $487.39 before starting a downside correction. The price declined and broke the $476 and $470 support levels. There was also a break below the 50% Fib retracement level of the last wave from the $443 low to $487 high. It opened the doors for more losses and the price tested the $448-450 support area.
However, the decline was protected by a key bullish trend line with support at $450 on the hourly chart of ETH/USD. The pair is currently trading below the $465 resistance and the 100 hourly simple moving average. There is also a short-term connecting bearish trend line with resistance at $464. A break above the trend line, $465 and the $468 level is needed for buyers to regain control. Above this last, the price may perhaps move above the $470 level to revisit the $480 zone.
Looking at the chart, the price spiked below the 76.4% Fib retracement level of the last wave from the $443 low to $487 high. Therefore, if the price fails to recover above the $462-468 resistance zone, there is a risk of more declines. The most important support is at $450, below which, ETH sellers may take control.
Hourly MACD – The MACD is now in the bearish zone.
Hourly RSI – The RSI is now placed near the 35 level.
Major Support Level – $450
Major Resistance Level – $468
