Key Highlights

Ethereum price moved sharply down this past week and my forecasted target of the $8.0 level was tested.

I was looking for a target of $8.00 for a suggested sell trade, which was achieved successfully.

There are a couple of bearish trend lines formed on the hourly chart (data feed via Kraken) of ETH/USD, which may now act as a resistance in the near term.

Ethereum price tumbled recently, and traded towards $8.0. It was a perfect sell, and it looks like the bulls may be exhausted.

Ethereum Price Downside Move

Ethereum price ETH was down and out, as there was a sharp downside move towards the $8.00 support area. I mentioned in my previous analysis that there is a chance of a decline in ETH/USD due to the technical indicators. It was a perfect sell, and the final target of $8.0 was achieved.

There was a bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD, which acted as a perfect catalyst for a decline. The price traded below $8.0, and a new low of $7.34 was created. There is now another bearish trend line formed, which can act as an immediate resistance area. Moreover, the 38.2% Fib retracement level of the last drop from the $11.60 high to $7.34 low is also positioned around the trend line to increase its importance.

There is a chance of a recovery towards $9.50, so if you are looking for a sell, then I would suggest to wait until there is a completion of a correction. On the downside, the $8.00 level may act as a support area.

Hourly MACD – The MACD may change the slope to the bullish area, which is a sign of a correction.

Hourly RSI – The RSI is around the oversold area, which may push ETH/USD price a bit higher.

Intraday Support Level – $8.00

Intraday Resistance Level – $9.50

Charts courtesy of Kraken via Trading View