Key Highlights
- ETH price failed to move above the $770 resistance and declined sharply against the US Dollar.
- There is a contracting triangle forming with support at $718 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently at a risk of more losses below the $718 and $700 support levels.
Ethereum price declined heavily against the US Dollar and Bitcoin. ETH/USD may continue to move down if it fails to stay above the $718 support level.
Ethereum Price Decline
There was a sharp bearish reaction from the $770 resistance in ETH price against the US Dollar. The price started a downside move and declined heavily below $750. It broke many support levels such as $750, $735 and $728. The decline is pointing a sign of a rejection from the $770 level since the price settled below the 100 hourly simple moving average. It even broke the 50% Fib retracement level of the last wave from the $706 low to $766 high.
It traded close the $710 level before buyers appeared. The downside move was protected by the 76.4% Fib retracement level of the last wave from the $706 low to $766 high. At the moment, it is consolidating losses near $720. An initial resistance is near the $728 level, which was a support earlier. It seems like there is a contracting triangle forming with support at $718 on the hourly chart of ETH/USD. If the price fails to move above the $728 and $735 levels, there can be a downside break.
Looking at the chart, the price has to stay above the $718 support level. If it fails to stay above $718, it could decline further towards the $700 level. On the flip side, above $735, the 100 hourly SMA may act as a hurdle near the $750 level.
Hourly MACD – The MACD is currently in the bearish zone.
Hourly RSI – The RSI is now placed in the oversold levels.
Major Support Level – $718
Major Resistance Level – $735
The post Ethereum Price Technical Analysis – ETH/USD’s Downside Drift appeared first on NewsBTC.