Ethereum Price Technical Analysis – ETH/USD Just Broke Support?
- ETH price made a downside move and broke a short-term support area at $12.40 against the US Dollar.
- The range support trend line at $12.54 was also broken on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair traded as low as $12.07 where it found support and recovered sharply.
Ethereum price made a downside move below $12.40 against the US Dollar, but later the ETH/USD pair managed to recover from $12.10.
Ethereum Price Downside Move
There was an ongoing range pattern noticed with support at $12.40 in ETH price against the US Dollar. The price later failed to gain momentum, and moved down to break the $12.40 support area. There was a clear break of the range support trend line at $12.54 on the hourly chart of ETH/USD (data feed via SimpleFX). It opened the doors for more downsides, and pushed the price lower towards the $12.10 level.
Later, the price found support after trading as low as $12.07, and started recovering. It moved above the 23.6% Fib retracement level of the last decline from the $13.24 high to $12.07 low. The recovery was nice, but there is a concern. The broken support area at $12.40-12.50 is now acting as a resistance zone. It is preventing gains and might push the price back lower.
Moreover, the 38.2% Fib retracement level of the last decline from the $13.24 high to $12.07 low at $12.51 is also acting as a resistance. In short, it looks like the price broke a crucial support area, and if it stays below it, there can be more declines. On downside, the $12.10-12.00 support area may act as a pivot area.
Hourly MACD – The MACD has moved into the bearish zone, breaking flat bias.
Hourly RSI – The RSI moved down, and now below the 50 level to signal downsides.
Major Support Level – $12.10
Major Resistance Level – $12.50
Charts courtesy – SimpleFX
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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