Key Highlights
- ETH price extended decline and traded below the $284 support against the US Dollar before correcting higher.
- There was a break above a connecting bearish trend line with resistance at $280 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $270-274 support zone to climb back higher in the near term.
Ethereum price is under pressure below against the US Dollar and bitcoin. ETH/USD is still above the $270-274 support, which is a positive sign.
Ethereum Price Trend Support
Yesterday, there was a downside correction initiated from the $298 swing high in ETH price against the US Dollar. The ETH/USD pair declined and broke the $290 and $284 support levels. The decline was such that the price settled below the $284 support and the 100 hourly simple moving average. There was also a break below the 76.4% Fib retracement level of the last wave from the $270 swing low to $298 high.
The price almost tested the last swing low and traded as low as $270.50. Later, there was a sharp bullish reaction and the price moved above $280. There was also a break above a connecting bearish trend line with resistance at $280 on the hourly chart of ETH/USD. However, the price struggled to clear the previous support at $284 and the 100 hourly SMA. Moreover, the 50% Fib retracement level of the last decline from the $297 high to $270 low also acted as a resistance. The price retreated and is currently retesting the broken trend line at $276.
Looking at the chart, ETH price was rejected from the $270-274 support area. As long as the price is above the mentioned support, it could bounce back towards the $284 and $290 resistance in the near term.
Hourly MACD – The MACD is about to move back in the bearish zone.
Hourly RSI – The RSI is currently below the 50 level and is moving south.
Major Support Level – $274
Major Resistance Level – $284
