Ethereum Price Weekly Analysis – ETH/USD Could Break Down
- ETH price is under a lot of selling pressure and it remains below the $750 level against the US Dollar.
- There is a key connecting bearish trend line forming with resistance at $710 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair remains in a downtrend and it could even break the $660 and $650 support levels.
Ethereum price is trading in a negative zone against the US Dollar and Bitcoin. ETH/USD may continue to face sellers and it could soon trade towards $600.
Ethereum Price Downtrend
There was a nasty decline in ETH price from well above $800 this past week against the US Dollar. The price started a downside move and traded below the $800 and $700 support levels. The downside pressure was aggressive and the price traded as low as $642.63. A recovery wave was initiated from the mentioned low, but the recovery was capped by the $740 level.
It moved above the 23.6% Fib retracement level of the last drop from the $873 high to $642 low. However, buyers were not able to push the price above the $740-750 resistance. Moreover, there was a failure near the 50% Fib retracement level of the last drop from the $873 high to $642 low. There was a major rejection noted from the $750 level and the price declined. On the upside, there is also a key connecting bearish trend line forming with resistance at $710 on the 4-hours chart of ETH/USD.
As long as the price is below the trend line and $720, it remains in a downtrend. Further to the topside, there is another bearish trend line with current resistance at $820. On the downside, the recent low near $642 is a short term support. A push below $642 could take the price towards $600.
4-hours MACD – The MACD is moving back in the bearish.
4-hours RSI – The RSI is currently near the 30 level.
Major Support Level – $600
Major Resistance Level – $720
Charts courtesy – Trading View
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