Ethereum prices shot up greatly from the $425 resistance level against the US dollar. The price of Ethereum is barely managing to stay above the $460 resistance level and it could drop to $420 in the near term.
- Ethereum is showing a few bearish signs below the key $460 resistance level.
- The price is trading above the $440 support and the 100 hourly simple moving average.
- There is a major contracting triangle forming with support near $450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline towards $420 if it fails to stay above $440 and the 100 hourly SMA.
Ethereum Price is Facing Hurdles
After a sharp downside correction, Ethereum found support near the $425 level. ETH price formed a base above $425 and started a fresh increase above the $435 resistance.
Ether gained pace above the $440 resistance and the 100 hourly simple moving average. There was also a break above the $450 resistance, but the price faced a major barrier near the $460 level. A high is formed near $461 and the price is currently declining.
There was a break below the $454 level, plus the price traded below the 23.6% Fib retracement level of the recent wave from the $425 low to $461 high.
Source: ETHUSD on TradingView.com
It seems like there is a major contracting triangle forming with support near $450 on the hourly chart of ETH/USD. If ether price breaks the triangle support, it could test the $442 support. It is close to the 50% Fib retracement level of the recent wave from the $425 low to $461 high.
The next major support is near the $440 level and the 100 hourly simple moving average, below which there is a risk of a sharp decline towards $425 or even $420 in the coming sessions.
Upsides Capped in ETH?
On the upside, an initial hurdle for Ethereum is near the triangle resistance at $458. The main resistance is near the $460 level, above which the bulls are likely to gain strength.
A successful break above the $460 resistance is likely to open the doors for a move towards the $470 zone. The next major resistance is near the $480 level.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is sliding and approaching the 50 level.
Major Support Level – $440
Major Resistance Level – $460
This article is sourced from:https://www.newsbtc.com