Ethereum Just Reversed But Bulls Are Not Out of Woods Yet
Ethereum is down close to 5% and it broke the $155 support area against the US Dollar. ETH price tested the main $145 support area and it is currently correcting higher.
Ethereum struggled to clear the $160 resistance and decline below the $155 level.
The bulls defended the main $145 support area (as discussed in the weekly analysis).
There was a break below a major contracting triangle with support near $155 on the hourly chart of ETH/USD (data feed via SimpleFX).
The pair must stay above the $145 support and recover above $155 to avoid more downsides.
Ethereum Price Nosedives
Yesterday, Ethereum made a couple of attempts to clear the $160 resistance area against the US Dollar. ETH price failed to gain bullish momentum above $160 and started a sharp decline.
There was a break below the key $155 support and the 100 hourly simple moving average. More importantly, there was a break below a major contracting triangle with support near $155 on the hourly chart of ETH/USD.
The pair even traded below the $148 swing low and tested the main $145 support area (as discussed in the weekly analysis). A new weekly low is formed near $146 and the price is currently correcting higher.
Ethereum surpassed the $150 level to start a decent recovery. The bulls pushed the price above the 23.6% Fib retracement level of the recent decline from the $160 swing high to $146 swing low.
On the upside, there is a strong resistance forming near the $155 level and the 100 hourly simple moving average (the recent breakdown zone). The 50% Fib retracement level of the recent decline from the $160 swing high to $146 swing low is also near the $155 level.
To move back into a positive zone, the price must clear the $155 resistance and make another attempt to surpass the key $160 resistance in the coming sessions.
On the downside, there is a decisive support forming near the $145 level. If the bulls fail to keep Ethereum price above the $145 support, there is a risk of a sharp decline.
The next support below $145 is near the $136 level, below which the price could even decline towards the $124 support level in the near term.
Hourly MACD – The MACD for ETH/USD is currently reducing its bearish slope.
Hourly RSI – The RSI for ETH/USD is struggling to recover and it is below the 40 level.
Major Support Level – $145
Major Resistance Level – $155
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