Ethereum Price (ETH) Testing Crucial Support But Recovery Won’t Be Easy
ETH price is under a lot of pressure below the $170 and $175 resistances against the US Dollar.
The price is likely to decline sharply if it settles below the $165 support area in the near term.
There is a declining channel forming with resistance near $169 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a decent recovery if the bulls manage to push the price above the $175 resistance.
Ethereum price is trading in a bearish zone versus the US Dollar and bitcoin. ETH price could continue to move down if it breaks the key $165 and $162 supports.
Ethereum Price Analysis
Yesterday, there was a sharp decline in ETH price below the $182 and $180 supports against the US Dollar. The price even closed below the $180 support and the 100 hourly simple moving average. Finally, there was a break below the $170 support and the price traded to a new monthly low near the $164 level. Similarly, there were heavy downsides in bitcoin, ripple, EOS, and binance coin.
Recently, Ethereum price corrected higher above the $165 and $166 levels. Moreover, there was a break above the 50% Fib retracement level of the recent drop from the $174 high to $164 swing low. However, the upward move was capped by the $170 and $172 resistance levels. It also seems like the price failed to gain traction above the 61.8% Fib retracement level of the recent drop from the $174 high to $164 swing low.
More importantly, there is a declining channel forming with resistance near $169 on the hourly chart of ETH/USD. The pair is currently trading in a bearish zone below the $170 pivot level. Therefore, the price must climb above the $170 level to start a decent recovery. If there is an upside break above $170, the price could recover towards $174 and $175.
On the downside, the main supports are near the $165 and $164 levels. Besides, the $162 level is also a strong support. Therefore, a downside break below the $162 support could start another major decline in the coming sessions. The next major support is near the $154 and $150 levels.
Looking at the chart, Ethereum price is facing a lot of hurdles on the upside near $170 and $174 levels. There are high chances of another drop below $165. However, it won’t be easy for the bears to gain momentum below the $164 or $162 support area.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back into the bearish zone.
Hourly RSI – The RSI for ETH/USD is slowly moving higher, but it is still below the 50 level.
Major Support Level – $165
Major Resistance Level – $170
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