- ETH price found resistance near the $119-120 zone recently and declined against the US Dollar.
- There is a major bearish trend line in place with resistance at $116 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to decline further below $110 as long as the price is below $116 and $120.
Ethereum price remains in a bearish zone against the US Dollar and bitcoin. ETH/USD could test the $105 support area if sellers remain in action below $116.
Ethereum Price Analysis
After forming a support near the $109-110 zone, ETH price corrected higher against the US Dollar. The ETH/USD pair traded above the $115 level and the 100 hourly simple moving average. However, the price struggled to break the $119-120 resistance zone. As a result, the price started a fresh decline and traded below the $115 and $112 levels. At the outset, the price is near the 50% Fib retracement level of the last wave from the $98 low to $125 high.
An initial support is near the $109-110 zone. It represents the 61.8% Fib retracement level of the last wave from the $98 low to $125 high. If sellers gain momentum below the $109 support area, there could be heavy losses. The next immediate support is near $105 and the 76.4% Fib retracement level. On the upside, an initial resistance is near the $116 level and the 100 hourly simple moving average. Moreover, there is a major bearish trend line in place with resistance at $116 on the hourly chart of ETH/USD.
Looking at the chart, ETH price seems to be under a lot of pressure below the $120 resistance and both trend lines. A successful close above the $119-120 resistance zone is needed to start a decent recovery in the short term.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI – The RSI moved down sharply towards the 30 level.
Major Support Level – $105
Major Resistance Level – $120