Key Highlights
- ETH price declined further and traded as low as $806 against the US Dollar before starting a recovery.
- There is a major bearish trend line forming with resistance at $850 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair is currently correcting higher, but it is facing many resistances such as $850 and $875.
Ethereum price fell sharply against the US Dollar and Bitcoin. ETH/USD is currently recovering, but it won’t be easy for the pair to gain upside momentum.
Ethereum Price Recovery
There was a minor recovery initiated yesterday from the $850 swing low in ETH price against the US Dollar. The price traded higher, but it could recover above the $880-900 resistance zone. It resulted in a downside move and the price traded below $850. It declined by more than $40 and traded close to $800. A low was formed at $806 from where the price started an upside correction.
It has moved above the 38.2% Fib retracement level of the last drop from the $895 high to $806 low. However, there are many resistances on the upside near $850. The stated $850 level was a support earlier and now it could prevent further gains. Moreover, there is a major bearish trend line forming with resistance at $850 on the hourly chart of ETH/USD. The 50% Fib retracement level of the last drop from the $895 high to $806 low is also around the same $850 level. Therefore, a break above the $850 level may ignite further recoveries in the near term.
The next major resistance on the upside is at $875 followed by $880. On the downside, an initial support is at $828. Below the mentioned $828, the price may retest the $806 swing low.
Hourly MACD – The MACD is slowly reducing its bearish slope.
Hourly RSI – The RSI has recovered nicely recently, but it is still well below the 50 level.
Major Support Level – $806
Major Resistance Level – $850
Charts courtesy – SimpleFX