Ethereum Turns Red, Signaling Fresh Decrease Below $125

Aayush Jindal

1 year ago

2 mins read

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Ethereum is struggling to stay above the key $125 support area against the US Dollar.
A successful close below $125 could spark another bearish wave in the near term.
There is a connecting bearish trend line forming with resistance near $130 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin is currently consolidating above the $7,200 support area.

Ethereum price is showing a few bearish signs versus the US Dollar and bitcoin. ETH price could decline heavily if there is a break below $125 and $120.

Ethereum Price Analysis

Yesterday, there was the start of a downside correction in Ethereum price from the $135 resistance against the US Dollar. Moreover, ETH price settled below the $130 support and the 100 hourly simple moving average.

It opened the doors for more losses and the price traded below $128. Recently, there was a break below a contracting triangle with support near $127 on the hourly chart of ETH/USD.

As a result, the price seems to be struggling to stay above the key $125 support area. If there is a successful close below the $125 support, the price could continue to move down. The next support is near the $120 level, below which the bears are likely to gain momentum and they might aim $115.

On the upside, Ethereum is facing hurdles near the $130 area and the 100 hourly simple moving average. An initial resistance is near the 50% Fib retracement level of the recent decline from the $130 high to $125 low.

Besides, there is a connecting bearish trend line forming with resistance near $130 on the same chart. An intermediate resistance is near the 76.4% Fib retracement level of the recent decline from the $130 high to $125 low.

Therefore, a successful close above the $130 resistance and the trend line is needed for a fresh increase. In the mentioned case, the price could revisit the $135 resistance area.

On the other hand, the price could struggle to recover above $130 and the 100 hourly SMA. Additionally, a break below the $125 support may perhaps put the bears in full control in the short term.

Looking at the chart, Ethereum price is showing a few bearish signs below the $130 resistance area. Thus, the price remains at a risk of more downsides below $125 unless it surges above $128 and $130.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now near the 30 level, with a minor bullish angle.

Major Support Level – $125

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.

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