Key Highlights
- ETH price struggled to move higher and broke an important support at $284 against the US Dollar.
- Yesterday’s highlighted declining channel pattern with support near $270 on the hourly chart of ETH/USD (data feed via SimpleFX) was broken.
- The price might continue to decline and could even trade towards the $240 level.
Ethereum price upside seems to be exhausted against the US Dollar and Bitcoin. ETH/USD broke $280 and now it can even test the $240 support in the near term.
Ethereum Price Resistance
There was a complete failure in ETH price to surpass the $290 level against the US Dollar. The price consolidated in a range below $290, but finally sellers had the upper hand. ETH declined and broke a couple of important support levels to trade below the $270 level. First, there was a break of the $285 support and the 100 hourly simple moving average. Second, yesterday’s highlighted declining channel pattern with support near $270 on the hourly chart of ETH/USD was cleared.
It opened the doors for more losses and the price moved below the $280 support and the 23.6% Fib retracement level of the last wave up from the $198.75 low to $298.70 high. The price also succeeded in breaking a crucial bullish trend line with support at $270 on the same chart. There was even a spike towards the 50% Fib retracement level of the last wave up from the $198.75 low to $298.70 high.
The broken support on the upside near $280 and the 100 hourly simple moving average might act as resistances going forward. On the downside, the next major support is near $240 and the 61.8% Fib retracement level of the last wave up from the $198.75 low to $298.70 high.
Hourly MACD – The MACD is now well placed into the bearish zone.
Hourly RSI – The RSI is currently recovering from the oversold levels.
Major Support Level – $240
Major Resistance Level – $280
Charts courtesy – SimpleFX