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Ethereum rose well from the $ 425 support zone against the US dollar. ETH price is struggling to break out of the $ 460 resistance and may revisit $ 420 in the near term.
- Ethereum is showing some bearish signals below the key resistance level of $ 460.
- The price is trading above the $ 440 support and the 100-hour simple moving average.
- There is a major contraction triangle forming with support near $ 450 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could fall as low as $ 420 if it fails to sustain above $ 440 and the 100-hour SMA.
Ethereum’s price is facing obstacles
After a sharp downward correction, Ethereum found support near the $ 425 level. The price of ETH formed a base above $ 425 and started a new rise above the $ 435 resistance.
Ether gained pace above the $ 440 resistance and the 100-hour simple moving average. There was also a break above the $ 450 resistance, but the price has faced a major barrier near the $ 460 level. A high has formed near $ 461 and the price is currently down.
There was a break below the $ 454 level, plus the price trading below the 23.6% Fib retracement level of the recent surge from the low of $ 425 to the high of $ 461.
Source: ETHUSD on TradingView.com
It appears that a major contracting triangle is forming with support near $ 450 on the ETH / USD hourly chart. If Ether price breaks the triangle support, it could test the support at $ 442. It is close to the 50% Fib retracement level of the recent wave from the low of $ 425 to the high of $ 461.
The next major support is near the $ 440 level and the hourly moving average of 100, below which there is a risk of a steep drop to $ 425 or even $ 420 in the next few sessions.
Are the positives limited in ETH?
On the upside, an initial hurdle for Ethereum is near the triangle resistance at $ 458. The main resistance is near the $ 460 level, above which the bulls are likely to strengthen.
A successful break above the $ 460 resistance is likely to open the door for a move to the $ 470 zone. The next big resistance is near the $ 480 level.
Technical indicators
MACD hourly – The MACD for ETH / USD is slowly gaining momentum in the bearish zone.
RSI hourly – The RSI for ETH / USD is slipping and approaching the 50 level.
Main Support Level: $ 440
Major resistance level – $ 460
