- ETH price failed to gain pace above the key $300 resistance area against the US Dollar.
- There was a sharp decline below the $290 and $295 support levels.
- There is a major bearish trend line forming with resistance near $290 on the hourly chart of ETH/USD (data feed via Kraken).
- The price is at risk of more losses below the $280 support level unless the price recovers above $290.
Ethereum price is under pressure below the $290 pivot level versus the US Dollar, and declined vs bitcoin. ETH price could continue to decline if the bulls fail to defend the $280 support.
Ethereum Price Analysis
After bitcoin failed to clear the $12,000 resistance, there was a downside push, dragging Ethereum lower against the US Dollar. Earlier, the ETH/USD pair climbed above the $300 level and formed a swing high near the $304 level. However, the price failed to gain pace above the key $300 resistance area. As a result, there was a bearish reaction and the price dipped below the $295 and $290 support levels.
Moreover, there was a close below the $290 support and the 100 hourly simple moving average. It even broke the $295 support and tested the $280 support. Ethereum is currently recovering and is trading near the $285 level. It seems like the 23.6% Fib retracement level of the recent dip from the $304 swing high to $280 low is acting as a resistance. On the upside, there are many resistances near the $290 level.
Besides, there is a major bearish trend line forming with resistance near $290 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent dip from the $304 swing high to $280 low is also near the $291 level to act as a strong resistance. The main resistance is now near the $295 level and the 100 hourly SMA. It also coincides with the 61.8% Fib retracement level of the recent dip from the $304 swing high to $280 low.
Therefore, the price is likely to struggle to clear the $290 and $295 resistance levels. On the downside, the $280 level is an initial support. If there is a downside break below the $280 support, the price could accelerate losses in the near term.
Looking at the chart, Ethereum price clearly declined after there was a strong dip in bitcoin price below $11,500. If BTC slides below $11,000, it could push ETH below the $280 support in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently gaining strength in the bearish zone.
Hourly RSI – The RSI for ETH/USD declined sharply below the 50 level and it is currently near 35.
Major Support Level – $280
Major Resistance Level – $290