Key Highlights
- ETH price declined further and broke the $121 support area against the US Dollar.
- There are two bearish trend lines formed with resistance near $121 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may correct higher in the short term, but it remains a sell near the $120 and $121 levels.
Ethereum price extended losses and declined below key supports against the US Dollar and bitcoin. ETH/USD may continue to move down and it could even test the $100 handle.
Ethereum Price Analysis
In the weekly analysis, we discussed the key $120 and $121 supports for ETH price against the US Dollar. The ETH/USD pair struggled to stay above the $121 support and later fell sharply. It broke the $121 and $120 support levels to test the next support at $114. A low was formed around the $113.45 level and the price is currently correcting higher. An initial hurdle is the 23.6% Fib retracement level of the recent decline from the $128 high to $113 low.
If there is a break above the $117 and $118 levels, the price may trade towards the $120-121 zone. The stated $120-121 zone was a support earlier and now it may prevent gains. More importantly, there are two bearish trend lines formed with resistance near $121 on the hourly chart of ETH/USD. Additionally, the 50% Fib retracement level of the recent decline from the $128 high to $113 low is at $121. Therefore, if the price corrects higher towards the $120 and $121 levels, it could find a strong selling interest. Above $121 and trend lines, the price could recover towards the 100 hourly simple moving average.
Looking at the chart, ETH price is under a lot of pressure below $121 and $128. If sellers remain in action, the price will most likely slide towards the $105 or $100 levels.
Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone, with lack of momentum.
Hourly RSI – The RSI for ETH/USD is currently recovering above the 30 level, but the overall bias is still bearish.
Major Support Level – $113
Major Resistance Level – $121
