Ethereum Price Analysis: ETH Nosedived, More Declines Likely

Key Highlights

  • ETH price failed to stay above the $ 146 support and declined heavily against the US Dollar.
  • There is a short term bearish trend line formed with resistance at $ 128 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair may correct a few points towards $ 130, but it is likely to extend declines below $ 120.

Ethereum price declined heavily during the past few hours against the US Dollar and bitcoin. ETH/USD could test $ 110 or $ 105 if it fails to recover above $ 128 and $ 136.

Ethereum Price Analysis

Yesterday, we saw a solid support near the $ 144-146 zone for ETH price against the US Dollar. The ETH/USD pair recently failed to break the $ 150-151 zone and a bearish trend line. It resulted in a sharp bearish reaction and the price declined below the $ 146 and $ 144 supports. Sellers gained control and pushed the price below the $ 130 level. There was even a close below the $ 130 level and the 100 hourly simple moving average. A low was formed near $ 122 and later the price started consolidating losses.

An initial resistance is the 23.6% Fib retracement level of the recent drop from the $ 151 high to $ 122 swing low. Moreover, there is also a short term bearish trend line formed with resistance at $ 128 on the hourly chart of ETH/USD. If there is a break above the trend line and $ 128, the price may recover further. The next key resistance is near the $ 126 level. The stated level represents the 50% Fib retracement level of the recent drop from the $ 151 high to $ 122 swing low. A proper close above the $ 136 level is needed for a decent recovery in the near term.

Ethereum Price Analysis ETH Chart

Looking at the chart, ETH price clearly made a sharp U-turn below the $ 146 support. As long as the price is below $ 136, there is a risk of more losses. A break below $ 122 and $ 121 may push the price towards $ 110.

Hourly MACDThe MACD for ETH/USD is slowly moving in the bullish zone, but the overall bias is still negative.

Hourly RSIThe RSI for ETH/USD is currently recovering from the oversold zone.

Major Support Level – $ 121

Major Resistance Level – $ 136

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