Ethereum (ETH) Medium Term Trend Turns Negative, Bears Eye $160
Ethereum is currently consolidating losses above the $172 support against the US Dollar.
Bitcoin price is also consolidating above the key $8,000 support area.
There is a new connecting bearish trend line forming with resistance near $176 on the hourly chart of ETH/USD (data feed via Kraken).
The price is likely to continue lower as long as it is below the $180 resistance.
Ethereum price is showing signs of bearish continuation versus the US Dollar, similar to bitcoin. ETH bears seem to be eyeing a test of $164 or even $160.
Ethereum Price Analysis
Recently, there was a downside break in Ethereum below the $180 support against the US Dollar. Moreover, ETH price settled below the $178 support and the 100 hourly simple moving average.
Later, it found support near the $172 level and started an upside correction. There was a break above the $175 resistance area. However, the upward move was capped by the $177-$178 resistance area.
Additionally, the price failed to stay above the 23.6% Fib retracement level of the last key decline from the $186 high to $172 low. At the outset, the price is consolidating above the $172 support and facing many hurdles near $176.
More importantly, there is a new connecting bearish trend line forming with resistance near $176 on the hourly chart of ETH/USD. Above the trend line resistance, the 100 hourly simple moving average is near the $178 level to act as a resistance.
Besides, the main resistance is near the $180 level. It coincides with the 50% Fib retracement level of the last key decline from the $186 high to $172 low. Therefore, Ethereum price must break the $178 and $180 resistance levels to start a decent recovery.
Conversely, the price could struggle to recover and continue lower below $172. If there is a downside break below the $172 support, the price is likely to accelerate lower towards the $166 and $164 support levels.
The main support is near the $160 area, where the bulls are likely to take a stand. Any further losses may perhaps push the price towards the $154 level.
Looking at the chart, Ethereum price is showing a lot of bearish signs below the $178 and $180 resistance levels. Therefore, there remains a risk of more downsides below the $172 support area. Only a close above $180 might negate the bearish view and start a decent recovery in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently flat in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently struggling to settle above the 50 level.
Major Support Level – $172
Major Resistance Level – $180
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