Ethereum against the US Dollar has descended swiftly in a short time period. The channel created now could be leading for further correction for the pair ETH/USD.
- Supports were not strong enough at all to withstand the selling pressure, concluded with Ether trading below $300 against the USD.
- Major resistances forming around the $320 mark on the hourly chart of the pair ETH/USD.
- There could a minor recovery momentum formed which very likely to be followed with sellers taking action and tanking the price at $300 and $320.
Ethereum Price Lost Steam – Now it is very Difficult to Hold Ground
With Yesterdays development, as Ethereum price failed to hold ground above the $320 important supporting mark, the pair ETH/USD clearly would be heading diving underwater and trade below the $300 mark. The ETH descending proportionally was initiated with the news coming out the China has officially banned ICOs. Leading virtual currencies paired with USD like Bitcoin, Bitcoin Cash and so on were massacred yesterday after the news came out. After flowing below $275 (specifically $274.01) there could a minor recovery attempt happening.
Since the last declining wave from $319.34 to $274.01, it is trading close to 23.6% Fib retracement level. For the moment that are two major bearish resistance lines made close and above the $320 mark on the hourly chart of the pair ETH/USD. That is indicating buyers will find much struggle to pass the $320 mark in any near term.
The major resistances right for the moment are the psychological $300 if in case the price recovers higher. However, if it breaks below it will be flowing towards $260 testing the supports.
- Hourly MACD – The MACD is now placed well into the bearish zone.
- Hourly RSI – The RSI is currently correcting, but remains well below the 50 level.
- Support Level – $260
- Resistance Level – $320