After reaching $170, the price broke down after developing bearish divergence in both the RSI and the MACD. It dropped sharply below both short-term moving averages all the way down to the support line, which has been in place for roughly 19 days. Price has struggled to break out above the 0.236 fib line of the entire drop and has created short-term bearish divergence combined with a bearish reversal pattern.
- The closest support area is found near $125.
- The closest resistance area is found at $165-$170.
- Price has been struggling to break out above the minor $145 resistance area.
- Price has made both a short-term double and triple top pattern.
Ethereum Price Analysis – ETH/USD – 4- Hours Chart
A look at the 4-hour chart shows that after briefly touching $170, the price dropped sharply all the way to $130, bouncing at the support line that corresponds with the 0.5 fib line of the entire upward move. It is currently trading at $140. The support line is drawn from the initial retracement on February 11 at $120 and has been in place for roughly 19 days. If the line fails to support the price, the next support area will be found near $125, corresponding with the 0.618 fib line. The past two days have seen minimal price movement, with the trading range being from $135 to $145.
As for the indicators, the price is trading below the 21 and 50-period moving averages and the Ichimoku cloud. The RSI is at 46, indicating neither overbought nor oversold conditions. On a more positive note, the MACD has made a bullish cross and is moving upward, but is not positive yet.
Ethereum Price Analysis – ETH/USD – 15 – Minutes Chart
A look at the 15-minutes chart shows that after bottoming at $136, the price has struggled to break out above the 0.236 fib line of the entire drop, and created a minor resistance area at $145. This area corresponds with the previous support from February 21. If the price breaks out above the resistance area, there will be significant resistance at the $151 level, formed by previous support and the 0.5 fib line.
As for price patterns, we can see that after reaching $145 price made a double top (bearish reversal pattern) combined with a bearish divergence in the RSI before dropping sharply to levels below the bottom at $135. After bouncing back, it has now created a triple top pattern combined with a bearish divergence in the RSI, but no drop has ensued yet. Price has been trading in the $135-$145 area for roughly the past three days.
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