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- ETH price is trading above a couple of important supports near $120 against the US Dollar.
- The price is facing a strong resistance near the $130 and $135 levels.
- There is a crucial bearish trend line forming with resistance near $130 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could either rally above $135 or it might decline heavily below the $120 support.
Ethereum price is trading near significant levels against the US Dollar, similar to bitcoin. ETH price must surpass $130 and $135 to start a strong upward move.
Ethereum Price Weekly Analysis
This past week, Ethereum extended its decline below the $126 support against the US Dollar. However, ETH price remained well bid near the $122 support area and stayed below the 100 simple moving average (4-hours).
The recent low was formed near $123 before the price started an upside correction. It traded above the $125 resistance area. Moreover, there was a break above the 50% Fib retracement level of the last slide from the $132 high to $123 low.
Having said that, there is a major hurdle forming for the bulls near the $130 area. More importantly, there is a crucial bearish trend line forming with resistance near $130 on the 4-hours chart of ETH/USD.
Besides, the trend line is close to the 76.4% Fib retracement level of the last slide from the $132 high to $123 low. Above the trend line, the next resistance is near the $132 level and the 100 simple moving average (4-hours).
The main resistance is near the $135 level, above which the price is likely to turn bullish. In the mentioned case, Ethereum price might rally towards the $144 and $150 resistance levels.
Conversely, the price might struggle to climb above the $130 and $132 resistance levels. Therefore, there is a risk of a sharp decline below the $122 and $120 support levels.
If the bears gain momentum below the $120 level, there are chances of a breakdown below the $115 swing low in the near term. In this case, the price may perhaps test the $105 support area.
The above chart indicates that Ethereum price is trading near a crucial juncture above $120. To start a strong upward move, the bulls need to gain momentum above $130 and $132. If not, the price is likely to decline heavily below $120.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly gaining strength in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently flat and above the 50 level.
Major Support Level – $120
Major Resistance Level – $132
