Ethereum price trimmed most of its gains and settled below $500.00 against the US Dollar. ETH/USD must break the $460.00 and $475.00 resistances to bounce back.
- Ethereum price struggled to hold gains and declined below $475.00 against the US Dollar.
- There is a major bearish trend line in place with resistance at $460.00 on the 2-hour chart of ETH/USD.
- The pair could break the $460.00 and $475.00 resistances for an upside break in the near term.
Ethereum Price Weekly Analysis
Ethereum price gained traction this past week and moved above the $500.00-505.00 resistance area against the US Dollar. The ETH/USD pair traded as high as $515.88 before buyers lost the momentum.
Looking at the 2-hours chart, there was a significant bearish reaction from the $515.88 high, resulting in a sharp decline. The price broke many supports on the way down such as $500.00, $485.00, $475.00 and $460.00.
There was even a close below the 61.8% Fib retracement level of the last wave from the $420.00 swing high to $515.88 high. During the decline, ETH sellers succeeded in clearing a crucial bullish trend line with support at $466.00.
It opened the doors for more losses and the price declined towards the $440.00 level. A low was formed at $441.17 and the price is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $515.88 high to $441.17 low.
There is also a major bearish trend line in place with resistance at $460.00 on the same chart. The trend line is positioned with the 21 simple moving average (2-hours) at $462.00.
Therefore, a close above $460.00 and the 21 hourly SMA could open the doors for an upside break. The next resistance is at $475.00, which is close to the 50% Fib retracement level of the last decline from the $515.88 high to $441.17 low.
On the flip side, if the price fails to move above the $460.00 and $475.00 resistance levels, there could be a fresh decline below the $441.17 low. The next important support on the downside is around $426.00.
The market data is provided by TradingView, Coinbase.