Ethereum technical analysis: Ethereum continues to suffer selling pressure

Translation: spring_zqy

Ethereum technical analysis: Ethereum continues to suffer selling pressure

It is difficult for Ethereum price to break through the bearish trend line on the hourly chart. Let’s analyze whether a breakout is possible.

Key points:

Ethereum price is struggling to gain ground against the US Dollar and is currently facing a major resistance on the rise.

The bearish trend line on the hourly chart is one I have been watching this week and it has been acting as a strong resistance in the bull market.

The price is also facing selling pressure near the 100 hourly SMA, which is near the mentioned trendline.

It is difficult for Ethereum price to break through the bearish trend line on the hourly chart. Let’s analyze whether a breakout is possible.

Ethereum Market - Trend Line Resistance

Ethereum price remains below a major resistance level against the US dollar as buyers have failed to push the price above it. This week I have been watching this major bearish trendline on the hourly chart (data from Kraken) and waiting for the next move. However, the resistance trendline does not seem to be disappearing anytime soon as every time the price tries to move higher, it is met with selling.

Another influencing factor is the 100-day hourly simple moving average, which is also near the same trend line. Therefore, there are two resistance levels acting as obstacles for Ethereum to the US dollar. In addition, the 50% golden line (the last period from $14.29 to $11.15) is also consistent with the 100SMA, making the sellers' momentum to hinder the price from rising further.

I think the price could fall a few more pips from the current level before it breaks out of the highlighted resistance zone.

Hourly Moving Average Convergence Divergence (MACD) – The MACD is currently relatively flat, which suggests that there could be a slight consolidation before the next move.

Hourly RSI – The RSI is just below the 50 line which is a bearish signal in my opinion.

Major Support Level – $12.20

Major Resistance Level – $12.80