Key points in the analysis
- The ETH price did not move higher and was traded below the support of $ 862 against the US dollar.
- There is a downtrend connection line that is formed with resistance to $ 865 on the ETH / USD time chart.
- The pair can correct some points in the short term, but could face sellers close to $ 865-870.
- The Ethereum price was recently reduced against the US dollar and Bitcoin. ETH / USD now remains at risk of further falls, as long as it is below $ 865.
Analyzing the price of Ethereum
There was a minor negative wave initiated in the ETH price from the maximum of $ 876 against the US dollar. The price decreased and was traded below the support levels of $ 860 and $ 862. On the downside, there was a break below a short-term uptrend line of $ 863 on the hourly chart. In addition, there was a close below support of $ 860 and the simple moving average of 100 hours, which is a negative sign.
A minimum was formed at $ 835 from where the price started an upward correction. He is currently testing the 23.6% retracement level of the last fall from the low of $ 876 to $ 835 low. However, the 100-hour SMA acts as a resistance near $ 852 and profits are prevented. On the positive side, there is a downtrend connection line that is formed with resistance to $ 865 on the ETH / USD hourly chart. An intermediate resistance is the 50% retracement level in the last fall from the high of $ 876 to $ 835 low.
Therefore, if the price is corrected higher, it may face sellers near the resistance levels of $ 860 and $ 862. On the downside, a break below the recent $ 835 decline may require further declines toward $ 800 and $ 785.
Important technical indicators
- MACD per hour: the MACD is gaining momentum in the bearish zone.
- RSI per hour: the RSI is now well below level 50 with many negative signs.
- Main support level: $ 835
- Highest resistance level – $ 862