Ethereum Price Plunges to $125: Can Bulls Save the Day?

Aayush Jindal

1 year ago

2 mins read

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Ethereum is currently declining and it broke the $130 support area against the US Dollar. ETH price is consolidating losses and upsides are likely to face hurdles near $128 and $130.

Ethereum is down around 2% and it tested the $125 support zone against the US Dollar.
The price is currently consolidating above $125 and it remains at a risk of more losses.
There is a major bearish trend line forming with resistance near $128 on the hourly chart of ETH/USD (data feed via Kraken).
A clear break below the $124 low could set the pace for more losses towards $120 and $118.

Ethereum Price Gaining Bearish Momentum

After struggling to stay above the $135 zone, Ethereum started a fresh decline against the US Dollar. ETH price gained bearish momentum and broke the $130 support level.

There was a close below the $128 level and the 100 hourly simple moving average. The price tested the $124-$125 support area and a low is formed near $124.

Ethereum is currently consolidating losses and trading above the $126 level. It broke the 23.6% Fib retracement level of the recent decline from the $133 high to $124 low. On the upside, there are many hurdles forming near the $128 level.

More importantly, there is a major bearish trend line forming with resistance near $128 on the hourly chart of ETH/USD. Above the trend line, the 50% Fib retracement level of the recent decline from the $133 high to $124 low is also near the $128 zone.

Therefore, the bulls are likely to face a strong selling interest near the $128 zone. The main hurdle is now near $130, above which the price could recover towards the $135 zone.

More Losses

On the downside, an initial support is near the $124-$125 area. If Ethereum dives below the $124 low, there are chances of more losses in the near term.

The next key support is near the $120 zone, where the bulls are likely to emerge. Any further losses could lead the price towards the $115 level in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now moving back into the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently rising and it is approaching the 50 level.

Major Support Level – $124

Major Resistance Level – $130

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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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