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ETH’s Attempt to Break $1,275 Is Foiled, Resulting in a Selloff

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image 11
11
Jul
    • ETH attempted to break above the $1,275 resistance zone but was unable to do so.
    • The price then consolidated somewhat at the 61.8% fib retracement level of the upward move.
    • A descending price channel is present on the hour chart for ETH as its price continues to drop.

Ethereum (ETH), the largest altcoin by market cap, attempted to break above the $1,275 resistance zone. However, ETH failed to extend its gains, and its price declined below the $1,220 level.

There was a visible move below the 100 hourly simple moving average and the $1,200 level. ETH’s price is struggling to stay above the $1,150 support zone after trading below the 50% fib retracement level of the upward move that saw it rise from a swing low of $1,076 to the move’s high at $1,276.

The price then consolidated somewhat at the 61.8% fib retracement level of the upward move before dropping further. In addition, there is also a bearish trend line forming with resistance at around $1,180 on the hourly chart of ETH/USD.

An immediate resistance on the upside will be near the $1,175 level, with the next major resistance level at $1,180. Should ETH’s price successfully break above this level, we could see it rise to $1,220.

ETH/USDT hourly chart (Source: CoinMarketCap)

On the hourly chart for ETH/USDT, the price of ETH has printed lower highs and lower lows according to CoinMarketCap, adding to the downwards trending price channel that its price has been trapped in.

The 9 and 20 Exponential Moving Averages (EMAs) suggest the ETH’s price is not done falling yet as the short 9 EMA is well below the longer 20 EMA. Furthermore, the 9 EMA is sloped negatively and is pulling the price of ETH and the 20 EMA down along with it.

Although the RSI is positioned above the RSI SMA, it is sloped towards oversold territory as it looks to close the margin that exists between itself and the RSI SMA. Furthermore, the 9 MA and 20 MA are almost touching each other, which could result in a bearish cross on the daily chart if bulls don’t step in.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.

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