Key Highlights
- ETH price declined sharply and broke the $220 and $214 support levels against the US Dollar.
- There was a break below a short-term bullish trend line with support at $222 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair even broke the $200 support and traded as low as $193.
Ethereum price declined and broke important supports against the US Dollar and bitcoin. ETH/USD could correct higher, but upsides could be capped near $208-209.
Ethereum Price Analysis
There were many rejections noted around the $226 and $230 levels in ETH price against the US Dollar. The ETH/USD pair reacted to the downside and broke many supports near the $220 level. It cleared the path for sellers to take control and the price declined more than 8%. There was even a close below the $214 support level and the 100 hourly simple moving average.
To initiate the decline, there was a break below a short-term bullish trend line with support at $222 on the hourly chart of ETH/USD. The decline was such that the price even broke the $200 support and traded as low as $193. At the moment, the price is correcting above $200. Buyers cleared the 23.6% Fib retracement level of the recent decline from the $224 high to $193 low. However, there are many hurdles on the upside near the $208 and $209 levels. More importantly, the 50% Fib retracement level of the recent decline from the $224 high to $193 low is near $209.
Looking at the chart, ETH price may recover a few points, but it is likely to face hurdles near the $209 level. On the downside, if there is a break below the $194-195 support, there could be more losses towards $180.
Hourly MACD – The MACD is showing heavy selling pressure in the bearish zone.
Hourly RSI – The RSI is now placed around the extreme oversold levels with a tiny correction signal.
Major Support Level – $195
Major Resistance Level – $209