Ethereum Price Analysis: ETH Losing Bullish Momentum, Downsides Limited

Aayush Jindal

1 year ago

2 mins read

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ETH price struggled to stay above the $121 and $119 support levels against the US Dollar.
This week’s followed major bullish trend line was breached with support at $121 on the hourly chart of ETH/USD (data feed via Kraken).
There is a new connecting bearish trend line in place with resistance at $121 on the same chart.
The price could revisit $121-122 resistance zone, where sellers are likely to reemerge.

Ethereum price is pointing a few bearish signs against the US Dollar and bitcoin. ETH/USD is now at a risk of an extended decline towards the $117 or $114 support level in the near term.

Ethereum Price Analysis

In the past few days, we saw range moves in ETH price below the $124 and $125 resistances against the US Dollar. The ETH/USD pair failed to break the $125 resistance and it recently declined below the $121 and $119 support levels. The decline was such that there was a spike below the $117 level and the 100 hourly simple moving average. More importantly, this week’s followed major bullish trend line was breached with support at $121 on the hourly chart of ETH/USD. The pair traded close to the $115 support and later bounced back sharply above $117.

Buyers were able to take the price above the 50% Fib retracement level of the recent decline from the $125 high to $115 low. However, the previous support levels near $121 and $122 are acting as hurdles for buyers. Besides, there is a new connecting bearish trend line in place with resistance at $121 on the same chart. The price also struggled to clear the 61.8% Fib retracement level of the recent decline from the $125 high to $115 low. At the moment, it seems like the price might jump above the $121 level, but upsides are likely to remain capped. If buyers struggle to push the price above the $122-123 zone, there could be a fresh decline.

Looking at the chart, ETH price is somewhat struggling below the $122-123 resistance zone. Having said that, the price needs to clear the last swing high at $125 to continue higher in the near term. If not, there is a risk of more losses below $119 and $117 in the near term. The main supports for a major decline is around the $114 and 115 levels.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD could move back in the bullish zone, but there are many negative signs visible.

Hourly RSI – The RSI for ETH/USD jumped higher after testing the 40 level and it is currently just above 50.

Major Support Level – $117

Major Resistance Level – $125

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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