Technical analysis of Ethereum market: the trend of Ethereum is not optimistic

Technical analysis of Ethereum market: the trend of Ethereum is not optimistic

The price of Ethereum recovered a few points but was once again met with selling. The ETH/USD pair is now trading below $12.00, which is a bearish signal.

Key points:

• Ethereum continues to decline against the US dollar.

• There is a bearish line on the hourly data chart (data from Kraken), pushing prices down all the way.

• Prices are still under pressure from all sides and may face more losses in the short term.

The price of Ethereum recovered a few points but was once again met with selling. The ETH/USD pair is now trading below $12.00, which is a bearish signal.

Ethereum Market - Downward Trend

There is absolutely no encouragement for Ether buyers as the price of Ether continues to fall. A bearish trend line has appeared on the hourly chart, which is a resistance to the price rise and continues to push the price down. Worst of all, the price has broken the important support level of 12.00, which will increase the short-term bearish pressure.

In addition, the 100-day hourly simple moving average (SMA) is just above this resistance trend line. The initial resistance is near the 23.6% golden line in the upside zone (the last period fell from $13.02 to $11.54). There is no doubt that the price is facing a lot of pressure, and if the current situation consolidates, then Ethereum may fall beyond $11.00 against the US dollar in the short term.

Only if this resistance trend is broken and surpassed, it is possible for the price to rise to the 61.8% golden line, which is around $12.45. I think there is no other choice but to sell it in the current situation, and the stop loss point is set above the 100SMA.

Hourly Moving Average Convergence Divergence (MACD) – The MACD is in the bearish zone, which suggests more losses in the short term.

Hourly RSI (Relative Strength Index) – The RSI is below the 50 line, which is also a bearish signal.

Major Support Level – $11.50

Major Resistance Level – $12.00