Ethereum Price Analysis: ETH/USD Holding Key Support
- ETH price is struggling to break the $585-587 resistance area against the US Dollar.
- Yesterday’s highlighted major bullish trend line is intact with support at $565 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $565 support and the 100 hourly simple moving average to avoid a downside reaction.
Ethereum price is consolidating in a range against the US Dollar and Bitcoin. ETH/USD should not break the 100 hourly SMA to stay in a bullish zone.
Ethereum Price Support
There was a slight upside push above the $575 resistance in ETH price against the US Dollar. However, buyers failed to retain momentum above the $585 and $587 resistances levels. A short-term high was formed at $586.31 and later the price started a downside correction. It declined and moved below the $580 support level. Moreover, there was a push below the 23.6% Fib retracement level of the last wave from the $540 low to $586 high.
However, the decline was protected by the $570 support. More importantly, yesterday’s highlighted major bullish trend line is intact with support at $565 on the hourly chart of ETH/USD. The 38.2% Fib retracement level of the last wave from the $540 low to $586 high is also acting as a major support. Lastly, the 100 hourly simple moving average is also positioned near the $565 level. Therefore, the $565 support holds a lot of importance. A break below $565 may open the doors for a larger downside correction in the near term.
Looking at the chart, the current price action is positive as long as ETH is above $565 and the 100 hourly SMA. On the upside, buyers must clear the $585-586 hurdle for more gains. Above $586, the price may retest the $600 handle.
Hourly MACD – The MACD is slightly place in the bearish zone.
Hourly RSI – The RSI is moving lower and is currently near the 50 level.
Major Support Level – $565
Major Resistance Level – $586
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