Ethereum Price Consolidating Losses: ETH & BTC Could Correct Higher

  • ETH price declined heavily below the key $ 300 support area against the US Dollar.
  • The price traded close to the $ 260 support level and it is currently consolidating losses.
  • There is a short term bearish trend line forming with resistance near $ 274 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher in the near term, but it is likely to struggle near the $ 282 and $ 285 resistances.

Ethereum price started consolidating losses after a sharp dip versus the US Dollar and bitcoin. ETH price might correct higher towards $ 285 in the coming sessions.

Ethereum Price Analysis

Yesterday, we saw a massive drop in bitcoin, Ethereum, ripple and other major altcoins against the US Dollar. ETH/USD declined heavily below the key $ 300 support area and it even broke the $ 285 support. Moreover, there was a close below the $ 285 level and the 100 hourly simple moving average. The price traded close to the $ 262 level and recently started consolidating losses.

It corrected above the $ 270 level plus the 23.6% Fib retracement level of the recent decline from the $ 290 high to $ 262 swing low. However, the upward move was capped by the $ 275-276 area. Moreover, there is a short term bearish trend line forming with resistance near $ 274 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent decline from the $ 290 high to $ 262 swing low is also acting as a resistance.

The current price action suggests that the price is forming a support base for a short term correction above $ 275. If it clears the trend line, the next stop for the bulls could be near the $ 280-282 zone. The 61.8% Fib retracement level of the recent decline from the $ 290 high to $ 262 swing low is also likely to act as a resistance. To start a fresh increase, the price must settle above the $ 285 resistance.

Conversely, if there is no upside break above $ 275 or $ 280, the price could extend losses. An initial support is near the $ 262 level, below which the price is likely to break the $ 260 support level. The next major support is near the $ 250 level.

Ethereum Price Analysis ETH Chart

Looking at the chart, Ethereum price seems to be consolidating losses above $ 262 and it might correct higher. Having said that, the price is likely to face a strong resistance near the $ 280 or $ 285 level in the near term.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is currently placed in the bullish zone.

Hourly RSIThe RSI for ETH/USD is slowly moving higher, but it is still well below the 50 level.

Major Support Level – $ 262

Major Resistance Level – $ 280

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