Ethereum price declined below a key support at $450.00 against the US Dollar. ETH/USD is currently consolidating above $424.00 and is preparing for the next break.
- Ethereum price faced a lot of selling interest this past week and declined below $450.00 against the US Dollar.
- There is a short-term contracting triangle formed with resistance at $438.00 on the 2-hour chart of ETH/USD.
- The pair may soon make the next move either above $440.00 or below $424.00.
Ethereum Price Weekly Analysis
Ethereum price broke to the upside, but it failed to break the $475.00-480.00 resistance zone this past week against the US Dollar. The ETH/USD pair started a fresh bearish wave and broke a crucial support near $450.00-452.00.
Looking at the 2-hours chart, there were back-to-back bearish candles and the price declined below the $465.00, $450.00 and $440.00 support levels. It even broke the $430.00 level and traded as low as $418.47.
Later, it moved back above $420.00 and is currently consolidating losses in a range. It recently corrected above the 23.6% Fib retracement level of the last drop from the $494.98 high to $418.47 low.
However, upsides were capped as the price failed to gain momentum above $440.00 and the 21 simple moving average (2-hours). At the moment, it seems like there is a short-term contracting triangle formed with resistance at $438.00 on the 2-hour chart of ETH/USD.
The pair is slowly approaching a key break either above $440.00 or below $424.00. Should the price succeeds in clearing the triangle resistance and $445.00, there could be more gains in the near term.
The next resistance awaits at $450.00-452.00, which is a crucial pivot zone. Above this, the 50% Fib retracement level of the last drop from the $494.98 high to $418.47 low at $456.72 may perhaps act as a hurdle.
On the flip side, if the price moves down and breaks $424.00, there could be a sharp bearish reaction. However, it won’t be easy for ETH sellers to clear the $400.00 support zone.
To sum up, Ethereum buyers must gain momentum above the $440.00 and $450.00 levels to push the price higher. If not, there is a risk of more losses below $424.00.
The market data is provided by TradingView, Coinbase.