Ethereum Price Technical Analysis – ETH/USD Correction Initiated

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Key Highlights

  • ETH price after a nice upside move against the US Dollar found resistance near $11.22, and started a correction.
  • There is a descending channel pattern formed on the hourly chart of ETH/USD (data feed via SimpleFX), which is acting as a downside move catalyst.
  • The price may dip towards $10.90 before gaining bids once again for an upside move.

Ethereum price after trading a few points above $11.20 struggled against the US Dollar, and now ETH/USD has started a correction wave.

Ethereum Price Trend

There was a nice uptrend initiated in ETH price against the US Dollar, as there was a move above $11.00. The price crawled higher and traded with a positive tone to trade as high as $11.22. It later found resistance, and started a downside move. It looks like there was a completion of a wave near $11.20, which means a correction wave is now initiated. The price already broke the 23.6% Fib retracement level of the last wave from the $10.41 low to $11.22 high. It means there is a chance of further downsides.

Looking at the hourly chart of ETH/USD (data feed via SimpleFX), there is a descending channel pattern formed with support at 10.90. The same channel pattern is currently taking the pair slowly down with an active resistance at $11.05. So, there is a chance of another dip before the ETH buyers appear. On the downside, the channel support is at $10.90. The same level also coincides with the 38.2% Fib retracement level of the last wave from the $10.41 low to $11.22 high.

Ethereum Price Technical Analysis

So, the $10.90 support area is important, and there is a chance of it acting as a buy zone in the short term.

Hourly MACD – The MACD is in the bearish zone, but may move into in the bullish slope.

Hourly RSI – The RSI is attempting to move back above the 50 level.

Major Support Level – $10.90

Major Resistance Level – $11.05

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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