Ethereum Turns ‘Sell’ After This Key Technical Breakdown

Aayush Jindal

Last Updated: June 11, 2024 1:46 pm

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum failed to continue above the $138 and $140 resistance levels against the US Dollar. As a result, ETH price declined below $130 and it is now trading in a bearish zone.

Ethereum is down more than 8% and it broke the $128 support against the US Dollar.
There was a key breakdown noted after the price was rejected near the $140 area.
There is a connecting bearish trend line forming with resistance near $129 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also down more than 5% and it is now trading well below the $6,000 level.

Ethereum Price Starts Fresh Decline

This past week, we saw a nice recovery in Ethereum above the $140 and $145 resistance levels against the US Dollar. ETH price even broke the $150 level, but it failed to continue higher.

A high was formed near $154 and the price started a fresh decline. There was a close below the $140 and $138 support levels, which later acted as a key hurdle for the bulls.

The price is now trading below the $130 support and the 100 hourly simple moving average. During the decline, there was a break below a major bullish trend line with support near $132 on the hourly chart of ETH/USD.

Ethereum tested the $120 support area and it is currently consolidating losses near the 23.6% Fib retracement level of the recent decline from the $137 swing high to $120 low.

On the downside, an initial support is near the $120 level. If the bears succeed in clearing the $120 support, the price could continue to move down. An immediate support is near the $112 level, below which the price is likely to decline towards the $105 support.

Upsides Capped

On the upside, Ethereum is facing many hurdles, starting with $130. There is also a connecting bearish trend line forming with resistance near $129 on the same chart.

Besides, the 100 hourly simple moving average is also positioned near the $130 level to act as a barrier for the bulls. A successful break above the $130 barrier could lead the price towards the $135 and $138 resistance levels in the near term. The main hurdle is now near $140, above which the price is likely to turn positive.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly reducing its last bearish slope.

Hourly RSI – The RSI for ETH/USD is currently correcting higher towards the 45 level.

Major Support Level – $120

Major Resistance Level – $130

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.