- Ethereum price declined heavily versus the US Dollar, but currently trading near a crucial support.
- There is a critical bullish trend line formed on the daily chart of ETH/USD (data feed via SimpleFX), which may stop the downside going forward.
- The 100-day simple moving average is also on the downside to act as a support area.
Ethereum price was under a lot of bearish pressure against the US dollar, and currently the bulls are fighting around a major support.
Ethereum Price Trend
Ethereum price ETH after staying above the $13.00 level against the US Dollar for some time, moved down and declined heavily. There was a solid downside move, which caught the ETH buyers by surprise. They were outpaced by the sellers, as the price declined below the $13.00 handle. The price also failed near the 50% fib retracement level of the last drop from the $14.26 high to $12.26 low lately, which ignited a downside move.
The price is currently trading near a critical bullish trend line formed on the daily chart of ETH/USD (data feed via SimpleFX). It may act as a monster support area on the downside, and might produce a bounce. Another important point is the fact that the 100-day simple moving average is also on the downside. So, we can say that the price is trading near a major support area on the daily timeframe chart.
However, it won’t be easy for the ETH bulls to take the price higher. On the upside, the 50% fib retracement level of the last drop from the $14.26 high to $12.26 low may continue to act as a resistance. I think we can see some more losses before the price can start a consolidation phase.
Daily MACD – The MACD is not showing any major bearish sign, which is good for the bulls.
Daily RSI – The RSI is currently above the 50 level, and may stay above it.
Major Support Level – $12.00
Major Resistance Level – $13.50
Charts courtesy – SimpleFX