This Confluence Of Bearish Factors Shows Ethereum Could Decline Heavily

Aayush Jindal

1 year ago

2 mins read

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Ethereum failed to settle above the $170 resistance and bitcoin struggled above $8,700. ETH price is currently declining and it seems like it could decline heavily if it breaks $162.

Ether price is starting to move into a bearish zone below $165 against the US Dollar.
Bitcoin price is declining and trading below the $8,640 support level.
This week’s key bearish trend line is still active with resistance near $168 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could decline heavily if the bears push it below $162 and $158 in the near term.

Ethereum Struggling To Gain Bullish Momentum

Yesterday, we saw a few positive signs for Ethereum above the $165 level against the US Dollar. However, ETH price failed to gain strength above the $168 level and topped near the key $170 resistance area.

A swing high was formed near $171 and recently the price started a fresh decline. It broke the $168 level and settled below the 100 hourly simple moving average. Moreover, the bears pushed the price below the 50% Fib retracement level of the recent wave from the $161 low to $171 high.

The price is now trading near the $165 level, and the 61.8% Fib retracement level of the recent wave from the $161 low to $171 high. The current price action for Ethereum suggests there is a risk of more losses below the $162 support level.

On the upside, there are many hurdles near $168 and $170. Additionally, this week’s key bearish trend line is still active with resistance near $168 on the hourly chart of ETH/USD.

The main resistance is still near the $170 level. Therefore, a successful close above the $170 resistance is must to start a strong upward move. The next hurdles are visible near the $178 and $180 levels.

Risk Of Sharp Decline in ETH

The first key support is near the $162 level. If there is a break below the $162 support, ETH price may perhaps struggle to stay above the $158 support.

In the mentioned case, Ethereum bears are likely to take control and push the price further below $155. The next target for them could be near the $150 support area.

Overall, ETH is struggling to clear a couple of major barriers near $170. The price is slowly turning bearish and it could decline heavily below $162 unless the bulls push the price above $170.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD declined and it is now well below the 50 level.

Major Support Level – $162

Major Resistance Level – $170

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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