Key Highlights
- Ethereum price moved down sharply and traded close to the $10.0 level against the US Dollar.
- There was a bullish trend line formed on the 4-hours chart (data feed via Kraken) of ETH/USD, which was breached during the downside move.
- The price is currently trading around the 100 simple moving average (H4), which may play a major role for the next move.
Ethereum price declined heavily due to the DAO hack, and lost around 40% of the value. Can losses stop in ETH or will it continue to move down?
Ethereum Price Decline
Ethereum price ETH fell like a stone during the past few hours against the US Dollar, and the main reason was the DAO hack, which ignited a sharp decline in the price. ETH/USD after trading as high as $21.00 found sellers and after the DAO hack report, it fell below the $16.00 level. Recently, the price traded towards the $10.0 level where the bulls are fighting to prevent any further declines.
During the downside move, the price broke a bullish trend line formed on the 4-hours chart (data feed via Kraken) of ETH/USD. The price is currently attempting to settle below the 100 simple moving average (H4), but it may not be easy for the sellers.
I think the 100 SMA holds the key for ETH/USD in the short term, and as long as the price do not settle below it, there is a chance of a minor recovery (as a part of a correction). No doubt, the price is under a lot of pressure and may continue to trade with a negative bias for some time.
4-hours MACD – The MACD is in the bearish slope, which is a bearish sign.
4-hours RSI – The RSI is around the 40 level, pointing towards weakness in ETH.
Weekly Support Level – $10.40
Weekly Resistance Level – $14.00
Charts courtesy of Kraken via Trading View