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- The price of ETH did not exceed the resistance of $ 137 and then declined against the US dollar.
- The price fell sharply and exceeded support levels of $ 134 and $ 132.
- The main downtrend highlighted yesterday is active with a resistance of USD 135 on the ETH / USD time chart (data feed via Kraken).
- The pair is currently correcting higher, but it should face sellers close to $ 134 and $ 135.
The price of Ethereum fell sharply under the key supports against the US dollar and Bitcoin. ETH might fix it higher, but it will likely struggle near the $ 135 resistance zone in the near term.
Ethereum Price Analysis
Yesterday, we discussed the importance of the resistance of 136-137 USD and the simple moving average every hour against the US dollar. The ETH / USD has been trying to beat the resistance of $ 136, but not gaining momentum. As a result, there was a strong bearish reaction below the support level of $ 135. The drop was such that the price even exceeded the support levels of $ 134 and $ 132. It reached a new weekly floor close to 130 USD and then began a correction upward.
Buyers pushed the price above the $ 132 level and the Fib retracement level by 23.6% from the recent decline of the maximum of $ 136 to $ 130. However, there are many upside obstacles near the $ 134 and $ 135 levels. The first hurdle is close to $ 134 and the Fib retracement level of 61.8% of the recent decline from the maximum of $ 136 to $ 130. The indicated level of $ 134 was a support before, and it can now be a resistance. In addition, the key bearish trend line highlighted yesterday is active with resistance at $ 135 on the ETH / USD time chart.
Finally, the ADM every 100 hours is also close to the $ 135 level and the trend line. Therefore, if the price continues to rise, it is likely that sellers will approach the resistance of $ 134 or $ 135. On the downside, the initial support is $ 132, below which the price can go back to the low of $ 130. Any other loss could drive the price towards $ 125 support.
Looking at the chart, the price of ETH faces many obstacles close to $ 134 and $ 135. Therefore, buying near the indicated resistance and 100 SMA might not be a good idea. Obviously, sellers remain in action near $ 135 and there are chances for a further decline to $ 132 or $ 130 in future sessions.
ETH Technical Indicators
Hourly MACD – The MACD for ETH / USD has entered the bull market, with a positive bias.
RSI hourly – The RSI for ETH / USD has recovered well above 40, but remains well below the 50 level.
Major Support Level – $ 130
Major resistance level – $ 135
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