Ethereum at Risk of a Larger Decline To $175: Here’s Why

Aayush Jindal

1 year ago

2 mins read

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Ethereum is down more than 10% and it broke the key $200 support against the US Dollar. Bitcoin’s decline is increasing pressure on ETH and it could decline further to $175.

ETH price is gaining bearish momentum and it broke the key $200 support zone against the US Dollar.
It is now trading below $192 and the 100 simple moving average (4-hours).
There was a break below a key bullish trend line with support near $205 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair is likely to continue lower towards the next major support at $175 or $165.

Ethereum Price Turns Red

This past week, Ethereum made a couple of attempts to gain bullish momentum above the $210 resistance area against the US Dollar, but it failed. ETH price formed a local top near the $215 level and started a strong decline.

The recent decline in bitcoin below the $9,000 support sparked heavy bearish moves in Ether. It broke the main $202 and $200 support levels to move into a bearish zone.

More importantly, there was a break below a key bullish trend line with support near $205 on the 4-hours chart of ETH/USD. The pair even settled below the $192 support and the 100 simple moving average (4-hours).

It is now trading below the 50% Fib retracement level of the upward move from the $146 swing low to $227 swing high. The current price action suggests that Ethereum might continue to move down below the $180 level.

The first key support is seen near the $175 level. It represents the previous breakout zone and coincides with the 61.8% Fib retracement level of the upward move from the $146 swing low to $227 swing high.

Any further losses may perhaps open the doors for a larger decline towards the $165 and $162 support levels in the near term.

Upsides Capped

If Ethereum starts an upside correction, an immediate resistance is near the $192 level. The first major resistance for buyers is seen near the $200 zone (the recent breakdown zone).

The 100 simple moving average (4-hours) is also near the $200 level to act as crucial hurdle. A successful close above the $200 level and the 100 SMA is needed to start a fresh uptrend.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

4 hours RSI – The RSI for ETH/USD is currently near the oversold zone at 26.

Major Support Level – $175

Major Resistance Level – $200

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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