Ethereum (ETH) Recovery Won’t Be Easy, Downtrend Persists

Aayush Jindal

1 year ago

2 mins read

Ethereum Price Technical Analysis ETH USD

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Ethereum is struggling to recover above the $144 and $146 resistance levels against the US Dollar.
The price is facing an uphill task and it could continue to move down below $140.
There is a key bearish trend line forming with resistance near $143 on the hourly chart of ETH/USD (data feed via Kraken).
The price remains at a risk of another bearish wave below the key $140 support area.

Ethereum price is under a lot of pressure versus the US Dollar, similar to bitcoin below $7,000. ETH price could decline below the $140 support and continue lower.

Ethereum Price Analysis

Recently, Ethereum retested the $140 support area against the US Dollar. However, ETH bears failed to gain momentum below $140 and a swing low was formed near $140.

The price started an upside correction above the $142 resistance area, but upsides remained capped. Moreover, the price struggled to clear the $144 resistance and the 100 hourly simple moving average.

A high was formed near $144 and the price started a fresh decline. It is trading below the $142 level. Besides, Ethereum price is sliding below the 50% Fib retracement level of the upward move from the $140 low to $144 high.

An immediate support is seen near the $141 level. Additionally, the 61.8% Fib retracement level of the upward move from the $140 low to $144 high is also near the $141 level.

The main support is still near the $139-$140 zone. If there is a downside break below the $140 support, with a proper close, then there is a risk of another bearish wave in the coming sessions.

On the upside, there are many hurdles, starting with the $142 level and the 100 hourly SMA. More importantly, there is a key bearish trend line forming with resistance near $143 on the hourly chart of ETH/USD.

Therefore, an upside break above the $142 and $144 resistance levels is must for a decent recovery. The next immediate resistance is near $146, above which the price could continue to recover towards the $152 resistance area.

Looking at the chart, Ethereum price is under pressure and it seems like the bears are in control below the $142 and $144. If ETH fails to stay above the $140 support, there is a risk of a sharp decline towards the $135 and $132 support levels.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving back into the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently declining and it is moving lower towards the 40 level.

Major Support Level – $140

Major Resistance Level – $144

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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