- ETH price started a downside correction after testing the $149-150 resistance area against the US Dollar.
- There was a break below a key bullish trend line with support at $146 on the hourly chart of ETH/USD (data feed via Kraken).
- There was an increase in selling pressure and the price tested the $139-140 support area.
- A few important supports are in place near the $141, $140 and $136 levels.
Ethereum price started a short term correction against the US Dollar and bitcoin. ETH/USD must stay above $136 and the 100 hourly simple moving average to bounce back.
Ethereum Price Analysis
In the past few days, ETH price climbed higher and broke the $135 and $140 resistances against the US Dollar. The ETH/USD pair even traded towards the $150 resistance zone, where sellers emerged. A top was formed just below the $150 level and later the price started a downside correction. It declined below the $146 support and the 23.6% Fib retracement level of the last leg from the $135 swing low to $150 swing high. It opened the doors for more gains and the price dropped towards the $140 support zone.
Moreover, there was a break below a key bullish trend line with support at $146 on the hourly chart of ETH/USD. The pair declined below the 50% Fib retracement level of the last leg from the $135 swing low to $150 swing high. However, there are many important supports are in place near the $141, $140 and $136 levels. The main support is near the $138 level. It coincides with the 76.4% Fib retracement level of the last leg from the $135 swing low to $150 swing high. Besides, the 100 hourly simple moving average is positioned near the $136 level to act as a strong support.
Therefore, if the price continues to decline, the $138 and $136 levels are likely to prevent losses. If there is a break and close below the 100 hourly SMA, the price might decline further towards the $130 level. On the other hand, if the price finds support near $138, it could start a fresh upward move.
Looking at the chart, ETH price corrected lower from the $150 resistance zone. However, dips remain supported as long as the price is above the $136 pivot zone. On the upside, an initial resistance is near $145, above which the price may retest $150.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD moved back in the bearish zone, with a few bearish signs.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level, with a bearish angle.
Major Support Level – $136
Major Resistance Level – $145
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* First published on newsbtc.com