Ethereum price analysis: ETH/USD recording over 4% drop, Contraction triangle forming

  • Ethereum price is struggling to correct higher with the upside momentum capped below $710.
  • The major resistance level at $710 is close to the 50% Fib retracement level which is a significant hurdle for price gains to occur.

Ethereum price upside gains have been capped below $710, although the price has been attempting a recovery since yesterday’s slump. The price struggled correct higher and only managed to get to a high of $738 on Monday. Lack of momentum to sustain the upside gains led to an adverse reaction below the 50% Fib retracement level of the last low of $650 and a swing high of $738.

Currently, Ethereum price is trading at $682. The price is forming a contraction triangle with strong resistance at $695. The currency s trading below the 100-simple moving average trendline which is sloping downwards on the intraday chart.

The price has been breaking above then 23.6% Fib retracement level with the last swing high of $738 and a low of $650. The major resistance level at $710 is close to the 50% Fib retracement level which is a significant hurdle for price gains to occur. The major support level at $680 prevented further declines during the Monday trading session. The support level could also prevent more loses if Ethereum encountered more losses in Tuesday evening session.

ETH/USD price hourly chart

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