- ETH price fell sharply yesterday and moved down from $203 to $100 against the US Dollar.
- During the downside move, the ETH/USD pair broke a major bullish trend line with support at $164 on the 4-hours chart (data feed via SimpleFX).
- The pair recovered sharply after testing the $100 handle, which is an important support.
Ethereum price corrected in a scary fashion against the US Dollar and Bitcoin, but now ETH/USD is back trading with a bullish bias above $140.
Ethereum Price Decline and Recovery
This past week was amazing, as ETH price climbed above the $200 level and traded as high as $203.45 against the US Dollar. Thereafter, it faced sellers and started a downside move below $200. The price fell sharply once a decline was initiated with a break below $190. The price cleared the 50% Fibonacci retracement level of the last wave from the $80.35 low to $203.45 high.
It opened the doors for more declines, and pushed the price below $150. Also, the ETH/USD pair broke a major bullish trend line with support at $164 on the 4-hours chart. The downside move finally found support around $100 where buyers appeared. The best part was no close below the 100 simple moving average (H4) and $120. It is a positive sign and suggests a bounce back above $130. The price is already above the 50% Fib retracement level of the last decline from the $203.45 high to $98.07 low.
The current price action is decent, and suggest more gains above $150. The price may soon break the 61.8% Fib retracement level of the last decline from the $203.45 high to $98.07 low at $163.17. Once there is a close above $165, the price may start heading towards $190 once again. The overall trend remains bullish with dips towards $140 as buying opportunity.
4-hours MACD – The MACD is about to move back in the bullish zone.
4-hours RSI – The RSI is about to break the 50 level.
Major Support Level – $120.00
Major Resistance Level – $165.00
Charts courtesy – SimpleFX