06 Feb Ethereum Price Analysis – A New Resistance Level For ETH/USD
- A new resistance level has emerged from today’s price action
- ETH price fell to a new low of $695.95 at the time of writing
- A bearish trend has been established, breaking the $880 support established last week
Previously, we’ve established a support level of $880, which was obviously broken down as ETH began to sink over the weekend. In fact, the downside movement was able to slip below two possible support levels at $760 and $700.
The $760 price point is considered a Fibonacci retracement support at 23.6%, so with today’s plunge, we have to see if ETH could hold at around $660 and test a new resistance of $715.
The bad news for ETH investors is that the coin’s price has been below the lower Bollinger band (as shown in the graph), so further declines appear to be a real possibility. Observing ETH price trends in the past few hours, a support of $640 must be a point of focus to further dissect the information we have.
- Current downward trend shows a support of $640
- A new resistance level of $720 is established
- Bollinger bands pushing ETH into bearish zone
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