- ETH price remained in a bearish zone after it settled below the $280 support against the US Dollar.
- The price declined heavily and recently tested the key support area near the $260 level.
- There is a crucial bearish trend line forming with resistance near $282 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to recover as long as it is trading above the key $260 support area.
Ethereum price is struggling to recover after a massive decline against the US Dollar and bitcoin. ETH price could start a decent upside correction once it breaks $272 and $282.
Ethereum Price Weekly Analysis
This past week, there were sharp losses in bitcoin and Ethereum against the US Dollar. The ETH/USD pair failed to hold gains and declined below the key $285 and $280 support levels. Moreover, there was a close below the $280 support and the 100 simple moving average (4-hours). The price even broke the $270 support area and tested the next key support area near the $260 level.
In the past two days, there were two attempts to break the $260 support, but sellers struggled to gain strength. At the moment, the price is consolidating above $260 and is trading inside a contracting triangle with resistance near the $272 level. The 23.6% Fib retracement level of the downward move from the $319 high to $260 low is also near the $274 level to act as a resistance. However, the main resistance on the upside is near the $280 and $284 levels.
Moreover, there is a crucial bearish trend line forming with resistance near $282 on the 4-hours chart of ETH/USD. Above the trend line, sellers might put up a fight near the $290 level and the 100 simple moving average (4-hours). Additionally, the 50% Fib retracement level of the downward move from the $319 high to $260 low is near the $290 level. Therefore, an upside break above $282 and $290 won’t be easy.
On the downside, the main support is near the $260 level. If there is a downside break below the $260 support, the price is likely to accelerate losses below the $250 level in the coming days.
The above chart indicates that Ethereum price is holding the main support near $260. As long as there is no daily close below $260, there are chances of a decent recovery towards the $282 and $290 levels.
4 hours MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
4 hours RSI – The RSI for ETH/USD is currently recovering above 30 and it may test the 50 level.
Major Support Level – $260
Major Resistance Level – $282