Ethereum (ETH) Hits Final Bearish Target, What’s Next?

Aayush Jindal

1 year ago

2 mins read

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Ethereum is down more than 8% and it tested the final $155 bearish target against the US Dollar.
Bitcoin price is also down around 6% and it traded close to the $7,400 bearish target (as discussed yesterday).
There is a short term contracting triangle forming with resistance near $165 on the hourly chart of ETH/USD (data feed via Kraken).
The price might correct higher towards $165 or even $168 before declining again.

Ethereum price is declining heavily versus the US Dollar, and bitcoin broke $7,650. ETH is currently correcting higher after tagging the key $154-$155 support area.

Ethereum Price Analysis

In the weekly forecast, we discussed the chances of a breakdown in Ethereum if it trades below the $180 support against the US Dollar. ETH price did settle below the $180 support and 100 hourly simple moving average, resulting in a sharp decline.

The price broke many supports near $172 and $166. Moreover, it is down close to 8% today and it recently tested the $154-$155 support area (the final possible target for the bears this month).

A new monthly low was formed near $156 and the price is currently correcting higher. It traded above the $160 level. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $177 high to $156 low.

At the outset, there is a short term contracting triangle forming with resistance near $165 on the hourly chart of ETH/USD. Above the triangle resistance, the $166 level could also act as a strong hurdle for the bulls.

Additionally, the 50% Fib retracement level of the recent decline from the $177 high to $156 low is near the $166 level. Therefore, Ethereum price is likely to face a strong selling interest near the $165 and $166 levels.

Once the current corrective wave is complete, the price might decline below $160. However, there are chances of ranging moves above the $155 support area for some time before the next major move.

If there is a downside break below the $154-$155 support area, the chances of a decent recovery in the near term will most likely fade. The next key support is seen near the $142 level.

Looking at the chart, Ethereum price is clearly struggling below the $166 and $172 level. The current wave is likely to complete near $166 or $172 before the bears take back control. Only a close above $172 could decrease the current bearish pressure.

ETH Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently correcting higher, but it is well below the 40 level.

Major Support Level – $154

Major Resistance Level – $166

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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