- ETH price declined heavily and traded close to the $120 support level against the US Dollar.
- Yesterday’s highlighted key bearish trend line is intact with resistance at $138 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to climb above the $138 and $140 resistance levels to start a decent recovery.
Ethereum price is trading near key supports against the US Dollar and bitcoin. ETH/USD must stay above $120 to recover in the short term.
Ethereum Price Analysis
Yesterday, we discussed that ETH price is in a nasty downtrend and it could decline below $140 against the US Dollar. The ETH/USD pair fell sharply and traded below the $140 and $132 support levels. The decline was such that the price traded close to the $120 level. A low was formed at $121 and the price is currently well below the 100 hourly simple moving average.
At the moment, the price is consolidating above the $120 support. It recently traded above the 23.6% Fib retracement level of the recent slide from the $145 high to $121 low. However, there are many resistances on the upside near the 136-138 zone. More importantly, yesterday’s highlighted key bearish trend line is intact with resistance at $138 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the recent slide from the $145 high to $121 low. Therefore, any upside move towards the $135, $136 and $138 levels is likely to find a strong selling interest.
Looking at the chart, ETH price is trading nicely above the $120 support level. As long as the price is above $120, there is a chance of an upside break towards the $140 and $150 levels in the near term. Below $120, the price could trade towards $105.
Hourly MACD – The MACD is about to move into the bullish zone.
Hourly RSI – The RSI is currently just above the 40 level.
Major Support Level – $120
Major Resistance Level – $138