- ETH price formed a short term top at $223 and corrected lower against the US Dollar.
- There is a major bullish trend line in place with support at $216 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline towards the $212 or $213 support level before buyers emerge again.
Ethereum price is slowly correcting lower against the US Dollar and bitcoin. ETH/USD is likely to find a strong buying interest near the $212 zone.
Ethereum Price Analysis
Yesterday, we saw a nice upward move above the $218 resistance in ETH price against the US Dollar. The ETH/USD pair traded above the $220 level and posted an intraday high near $223. Later, there was a downside correction and the price declined below the $220 and $218 level. Moreover, there was a break below the 23.6% Fib retracement level of the last wave from the $205 low to $223 high.
Besides, sellers pushed the price below a connecting bullish trend line with support at $218 on the hourly chart of ETH/USD. However, the pair is now approaching another major bullish trend line in place with support at $216 on the same chart. If there is a downside break below $216, the price could test the $212-213 support area. An intermediate support is near $214. It represents the 50% Fib retracement level of the last wave from the $205 low to $223 high. Therefore, if the price extends decline, it may well find a strong support near the $212 or $213 support level. On the upside, an initial resistance is near the $219-220 zone, above which the price could surpass the $213 high.
Looking at the chart, ETH price is currently correcting lower, but it is approaching key supports above $212. Once the current wave is complete, the price will most likely bounce back above $221.
Hourly MACD – The MACD is back in the bearish zone.
Hourly RSI – The RSI has just moved below the 50 level.
Major Support Level – $212
Major Resistance Level – $220
Author: Aayush Jindal