Ethereum Price Weekly Analysis – ETH/USD Upsides Remain Capped

Key Highlights

  • ETH price is currently recovering, but upsides remain capped by the $460 level against the US Dollar.
  • There is a major bearish trend line forming with resistance at $460 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair may correct a few points in the near term, but it will most likely face sellers near $450-460.

Ethereum price is under huge selling pressure against the US Dollar and Bitcoin. ETH/USD is likely to extend declines once the current correction is complete.

Ethereum Price Resistance

There were heavy declines this past week in ETH price from well above the $550 level against the US Dollar. The price fell sharply and broke many supports such as $500 and $400. It traded as low as $362 from where a minor upside correction was initiated. It tested the 23.6% Fib retracement level of the last decline from the $595 high to $362 low.

However, the upside move could not gain momentum above the $415-417 zone. There is also a major bearish trend line forming with resistance at $460 on the 4-hours chart of ETH/USD. The same trend line is close to the 38.2% Fib retracement level of the last decline from the $595 high to $362 low. A break and close above the $460 level could clear the path for an upside move. The next hurdle could be the 50% Fib retracement level of the last decline from the $595 high to $362 low near $475.

On the downside, the recent low near $362 is a decent support. If the price fails to stay above the mentioned $362 level, there could be more losses towards the $350 level. Further below $350, the next stop could be the $320 level.

4-hours MACD – The MACD is slightly showing recovery signs in the bearish zone.

4-hours RSI – The RSI is currently well below the 40 level.

Major Support Level – $362

Major Resistance Level – $460

 

Charts courtesy – Trading View

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