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Ethereum Price Technical Analysis – ETH/USD Correction Initiated

Key Highlights

  • ETH price made a nice upside move towards $51.00 against the US Dollar where it found resistance, and moved down.
  • There was a bullish trend line with support at $49.35 on the hourly chart (ETH/USD, data feed via SimpleFX), which was broken recently.
  • The price may have started a downside move with a rejection near the $50.99 level.

Ethereum price after a sharp upside move towards $51 against the US Dollar found sellers, and now ETH/USD is moving lower and struggling.

Ethereum Price Downside Break

Yesterday, there was an increase in buying interest , which pushed ETH price above $49.50 against the US Dollar. First, there was a slight push towards the 50% Fib retracement level of the last wave from the $42.45 low to $48.5 high. Later, it found support, gained pace and moved towards the $51 level. A new weekly high was formed at $50.99 where it faced sellers. As a result, a downside move was initiated.

During the downside move, the price broke the $50.20 support area. Also, there was a break below the 23.6% Fib retracement level of the last wave from the $42.56 low to $50.99 high. This was not all, as there was a break below a bullish trend line with support at $49.35 on the hourly chart of ETH/USD. It looks like the price has made a short term top near $50.99.

Ethereum Price Technical Analysis ETH

The recent break was catching, and could spark a minor dip towards $47.70 in the near term. The next support is around the 38.2% Fib retracement level of the last wave from the $42.56 low to $50.99 high. Any further downsides may take the price towards $46.78.

Hourly MACD – The MACD is reducing the bullish slope.

Hourly RSI – The RSI is currently just above the 50 level, and a break may ignite a downside move.

Major Support Level – $47.70

Major Resistance Level – $50.20

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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