Ethereum Price Analysis: ETH/USD Forming Double Top
- ETH price traded further higher and tested the $635 resistance area against the US Dollar.
- There is a key bullish trend line formed with support at $612 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair has formed a double top pattern near the $635 level and it may decline further in the short term.
Ethereum Price Resistance
There was a nice upside move in ETH price from the $580 support zone against the US Dollar. The price moved above the $600 and $610 resistance levels to trade further higher. It even succeeded in surpassing the $630 level. However, sellers appeared around the $635 resistance and the price failed to retain traction. A high was formed near $637 before the price started a downside correction.It declined below the 23.6% Fib retracement level of the last wave from the $588 low to $637 high. However, there are a few important supports on the downside above the $610 level. There is also a key bullish trend line formed with support at $612 on the hourly chart of ETH/USD. Moreover, the 50% Fib retracement level of the last wave from the $588 low to $637 high is near the $612 level to prevent declines. Therefore, a downside break below $612 and $610 won’t be easy in the near term.
Looking at the chart, it seems like the price was rejected twice near the $635 resistance. Therefore, there are chances of a double top pattern near $635, which could result in further losses below $612. A downside break below $612 may perhaps signal a confirmation towards the next support at $600.
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI – The RSI is moving lower towards the 50 level.
Major Support Level – $612
Major Resistance Level – $635
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