Key Highlights
- ETH price declined further and traded towards the $180 level against the US Dollar.
- There was a break below a key contracting triangle with support at $194 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair traded as low as $184.15 and it is currently correcting higher towards resistances.
Ethereum price extended losses against the US Dollar and bitcoin. ETH/USD may correct a few points, but upsides are likely to be capped near $196-198.
Ethereum Price Analysis
Yesterday, there was a sharp downside move below the $220 support in ETH price against the US Dollar. The ETH/USD pair even traded below the $200 support and later started an upside correction. However, the upside move was contained and the price was not able to move above the $205-210 zone. The price started a fresh decline and moved below yesterday’s low and the $190 level.
During the slide, there was a break below a key contracting triangle with support at $194 on the hourly chart of ETH/USD. A new monthly low was formed at $184.15 before the price started an upside correction. The price is testing the 50% Fib retracement level of the last drop from the $203 high to $184 low. On the upside, there are many resistances near the $195-198 zone. The broken triangle support and the upper trend line at $196 are likely to prevent gains. Moreover, the 61.8% Fib retracement level of the last drop from the $203 high to $184 low is also likely to act as a resistance.
Looking at the chart, ETH price seems to be approaching key resistances near the $195, $196 and $198 levels. A break above these is needed for a recovery above $200. On the downside, a push below $184 could accelerate losses towards $192.
Hourly MACD – The MACD is back in the bearish zone.
Hourly RSI – The RSI is slowly recovering, but it is still below the 40 level.
Major Support Level – $184
Major Resistance Level – $198
