Key Highlights
- ETH price failed to hold gains above $230 and $227, and declined against the US Dollar.
- Yesterday’s followed important ascending channel was broken with support at $226 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently under pressure and it seems like it could decline towards $222 or $220 in the near term.
Ethereum price is slowly moving lower against the US Dollar and bitcoin. ETH/USD is at a risk of a minor bearish reaction back towards $220.
Ethereum Price Analysis
There was a failure noted near the $230-231 zone in ETH price against the US Dollar. The ETH/USD pair started a downside move and traded below the $228 level. There was also a break below the $227 support and the 100 hourly simple moving average. The price extended losses and declined below the 50% Fib retracement level of the last wave from the $220 low to $230 high.
More importantly, yesterday’s followed important ascending channel was broken with support at $226 on the hourly chart of ETH/USD. The pair seems to be in a downside correction and it may decline further towards $222. An immediate support is positioned near the $224 level. It represents the 61.8% Fib retracement level of the last wave from the $220 low to $230 high. If the price breaks the $224 support level, there could be more losses towards the $222 and $220 levels. On the flip side, if the price moves higher, the previous support at $227 may act as a resistance.
Looking at the chart, ETH price is currently showing a few bearish signs below $230 and $227. As long as the price is below these levels, there is a possibility of an extended correction towards $224 or $222 in the near term.
Hourly MACD – The MACD is placed slightly in the bearish zone.
Hourly RSI – The RSI has moved below the 50 level with a bearish angle.
Major Support Level – $222
Major Resistance Level – $230