Key HighlightsETH price is under a downside correction since it broke the $245 support against the US Dollar.Yesterday’s discussed contracting triangle with support near $242 was breached on the hourly chart of ETH/USD (data feed via Kraken).The pair is likely to extend losses towards the next support at $214 and $212.
Ethereum price is facing an increased selling pressure against the US Dollar and bitcoin. ETH/USD may continue to slide towards the $212 support in the near term.
Ethereum Price Analysis
It seems like there was a failure to hold gains above the $240 level in ETH price against the US Dollar. The ETH/USD pair started a downside correction and broke the $242 and $235 support levels. There was also a break below the 50% Fib retracement level of the last wave from the $205 low to $256 high. It opened the doors for more losses and the price settled below $240 plus the 100 hourly simple moving average.
Moreover, yesterday’s discussed contracting triangle with support near $242 was breached on the hourly chart of ETH/USD. The pair is now placed in a bearish zone below the $235 level. It could even settle below the 61.8% Fib retracement level of the last wave from the $205 low to $256 high. Below $220, the next major support is near the $212-214 zone, which was a resistance earlier. On the other hand, if the price moves higher, the $235 level could act as a resistance. Additionally, the 100 hourly SMA at $234 may also act as a resistance.
Looking at the chart, ETH price is likely to revisit the $212-214 support zone. To recover, the price has to move back above the $235 and $240 levels in the near term. More importantly, below $212, the price could turn bearish towards $200 and $190.
Hourly MACD – The MACD is now back in the bearish zone.
Hourly RSI – The RSI is well above the 40 level.
Major Support Level – $214
Major Resistance Level – $235