Ethereum Price Analysis: ETH at Continued Risk of Weakness
ETH price extended declines and traded below the $131 and $130 support levels against the US Dollar.
The price is back above the $130 level, but it remains below the key $134 resistance.
Yesterday’s key bearish trend line is intact with resistance at $134 on the hourly chart of ETH/USD (data feed via Kraken).
The pair remains in a bearish zone and it may continue to move down towards $128 or $126.
Ethereum price is trading with a bearish bias against the US Dollar and bitcoin. ETH/USD is likely to extend losses below $130 as long as it is trading below the $134 resistance.
Ethereum Price Analysis
Yesterday, we saw a bearish wave below the $136 and $134 supports in ETH price against the US Dollar. Later, the ETH/USD pair corrected a few points, but the $134 level acted as a solid resistance. Finally, the price declined again and broke the $131 and $130 support levels. The price spiked below the $130 level and settled well below the 100 hourly simple moving average. A low was formed close to the $129 level and recently the price corrected above the $130 level.
It is currently trading near the 23.6% Fib retracement level of the recent decline from the $135 swing high to $129 swing low. However, there are many hurdles waiting on the upside near the $132 and $134 levels. The $132 level represents the 50% Fib retracement level of the recent decline from the $135 swing high to $129 swing low. The $134 resistance was a support earlier and now it is likely to act as a solid hurdle. Moreover, yesterday’s key bearish trend line is intact with resistance at $134 on the hourly chart of ETH/USD. Besides, the 100 hourly simple moving average is also positioned just above the $134 resistance level.
Therefore, if the price continues to move higher, it could face a strong resistance at $132 or $134. Selling rallies could be an option as long as the price is below $134 and the 100 hourly simple moving average.
Looking at the chart, ETH price is clearly trading in a bearish zone below the $134 resistance. In the short term, there could be an upside correction, but the $134 level is likely to prevent gains. On the downside, the $129-130 support area may act as a buy zone. However, a close below the $130 level will most likely trigger more losses towards the $128 or $126 level.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 40 level, with a bearish angle.
Major Support Level – $130
Major Resistance Level – $134
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