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- The price of ETHs remained below the resistance levels of 120 and 125 USD against the US dollar.
- There is a crucial downtrend line formed with resistance at $ 116 on the ETH / USD 4 hour chart (data feed via Kraken).
- The pair must exceed the resistance levels of $ 116, $ 117 and $ 120 for the increase to be decent.
The price of Ethereum is trading in a narrow range compared to the US dollar and Bitcoin. ETH / USD could struggle to exceed USD 120, which could result in a break-down of USD 112.
Ethereum Price Analysis
Last week, the price of ETHs was a decent support base close to the levels of $ 112 and $ 114 against the US dollar. The ETH / USD started a recovery and exceeded the resistance levels of $ 116 and $ 117. There was also a break above the Fib retracement level of 23.6% from the last drop, from the low of $ 126 to $ 111. However, recovery was limited to resistance levels of $ 119 and $ 120. As a result, there has been a further decline and the price has recently retested the $ 112 support level. For the moment, the price is trading in a range of over $ 112 and he is preparing for the next move.
On the other hand, a strong resistance is formed around the levels of 116 and 117 dollars. There is also a crucial downtrend line formed with resistance at $ 116 on the 4 ETH / USD chart. Above the trend line, the next resistance is close to the $ 119 level. It represents the Fib retracement level of 50% of the last decline, from the low of $ 126 to $ 111. Finally, the simple moving average 100 (4 hours) is positioned near the level of $ 120 to constitute a major obstacle. Therefore, to gain momentum, the price must break the resistance levels of 116, 117 and 120 dollars.
The chart above shows that the price of ETHs seems to be approaching the next break above 120 USD or below 112 USD. On the downside, a break below $ 112 could push the price up to $ 110.
Technical indicators
MACD 4 hours – The MACD for ETH / USD is mostly flat in the bearish zone.
RSI 4 hours – The RSI for ETH / USD is falling and it is below level 40.
Major support level – $ 112
Major resistance level – $ 120
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