Ethereum (ETH) Breaks Key Support, Trend Turns Super Bearish

Aayush Jindal

1 year ago

2 mins read

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Ethereum price is declining below the key $180 support against the US Dollar.
Bitcoin price is down more than 2% and it also broke the $8,200 support area.
Yesterday’s bearish trend lines are intact with resistance near $185 on the hourly chart of ETH/USD (data feed via Kraken).
The price is currently flirting with the $178 support and it is likely to continue lower.

Ethereum price is breaking down versus the US Dollar, similar to bitcoin. ETH price is likely to accelerate its decline towards the $170 and $166 support levels.

Ethereum Price Analysis

Recently, Ethereum failed to surpass the $186 resistance area against the US Dollar. As a result, ETH price a fresh decline below the $182 support level. Moreover, the price broke the $180 support and settled below the 100 hourly simple moving average.

The recent decline was such that the price even broke the main $178 support area. A new monthly low was formed near $174 and the price is currently correcting higher.

It is trading near the $178 pivot area. Besides, Ethereum is trading near the 23.6% Fib retracement level of the recent decline from the $186 high to $174 low. On the upside, there are many resistances near the $180 zone (the previous support).

Additionally, the 50% Fib retracement level of the recent decline from the $186 high to $174 low is also near the $180 level. More importantly, yesterday’s bearish trend lines are intact with resistance near $185 on the hourly chart of ETH/USD.

An intermediate resistance is near $182 and the 100 hourly simple moving average. Therefore, the price seems to be facing a strong resistance near the $180, $182 and $185 levels.

A successful break above the $185 resistance is must for a decent recovery. On the downside, an initial support is near the $175 area. If the bears gain momentum below $175, there is a risk of a downside extension below the $170 support.

The next key support is near the $166 level, below which the bears are likely to eye a test of the $154 and $152 support levels in the near term.

Looking at the chart, Ethereum price is clearly flirting with the $178 support and it is likely to continue lower. If there is another break down below the $175 level, the price could really struggle to bounce back. On the upside, the bulls are facing many hurdles, starting with $182 and up to $185.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently losing pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently correcting higher from the oversold readings.

Major Support Level – $175

Major Resistance Level – $185

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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