Key Highlights

ETH price made a sharp downside move and broke the $458 and $420 support levels against the US Dollar.

There was a break below a major bullish trend line with support at $462 on the hourly chart of ETH/USD (data feed via SimpleFX).

The pair started recovering after trading as low as $398.04 and forming a base.

Ethereum price declined sharply against the US Dollar and Bitcoin. ETH/USD is recovering but might face sellers near $458-465.

Ethereum Price Resistance

There was sharp rejection and a downside move in ETH price from well above $500 against the US Dollar. The price declined by more than $100 and traded below the $458 and $420 support levels. The decline was such that the price even broke $400 to trade as low as $398.04. During the downside, there was a break below a major bullish trend line with support at $462 on the hourly chart of ETH/USD. Later, a recovery wave was initiated and the price moved above the 23.6% Fib retracement level of the last decline from the $513.75 high to $398.04 low.

The current recovery is very positive, but the pair is facing many hurdles on the upside near $465-470. The $458-465 support area could now act as a resistance. Moreover, the 50% Fib retracement level of the last decline from the $513.75 high to $398.04 low is around $455 to act as a resistance. It seems like there are many resistance forming toward $480 in the near term.

If the pair fails to break the $465 resistance zone, it might decline once again. On the downside, supports can be seen near $420 and $400 levels. Below $400, there can be heavy declines in ETH/USD.

Hourly MACD – The MACD is placed well in the bearish zone.

Hourly RSI – The RSI is correcting higher but it remains well below 50 level.

Major Support Level – $420

Major Resistance Level – $465

Charts courtesy – SimpleFX

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Source: newsBTC