ETH price corrected a few points after a sharp decline below the $142 support area against the US Dollar.
- The price corrected above $138, but the previous supports at $141 and $142 prevented gains.
- There is a short term breakout pattern in place with resistance at $140 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must break the $142 resistance and the 100 hourly simple moving average to move into a positive zone.
Ethereum Price Analysis
Recently, we saw a sharp decline in ETH price from well above $165 against the US Dollar. The ETH/USD pair broke many supports such as $155, $150 and $142. It even broke the $136 support and traded near the $130-131 zone. A low was formed near $131 and later the price started correcting higher. It moved above the $135 and $136 levels and later started consolidating losses. Buyers pushed the price towards the 23.6% Fib retracement level of the recent drop from the $166 high to $131 low.
However, the $141 and $142 levels acted as a strong resistance. At the outset, it seems like there is a short term breakout pattern in place with resistance at $140 on the hourly chart of ETH/USD. On the upside, the pair needs to clear the triangle resistance and the $142 level. The main resistance is near the $144 level and the 100 hourly simple moving average. If buyers succeed in clearing the 100 hourly SMA and $144, there could be more gains. The next key resistance is near the $149 level. It represents the 50% Fib retracement level of the recent drop from the $166 high to $131 low.
On the other hand, if there is no upside break above $144, the price could decline further. A break below the $136 support may push the price towards the $132 level. Finally, a break below the recent swing low will most likely push the price below $130.
Looking at the chart, ETH price might continue to struggle near the $141, $142 and $144 resistance levels. However, if there is a successful close above $144 and the 100 hourly SMA, buyers could gain momentum in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slightly placed in the bullish zone, with no major bullish signal.
Hourly RSI – The RSI for ETH/USD is currently just around the 50 level, with a flat structure and neutral bias.
Major Support Level – $132
Major Resistance Level – $142
- Source: First Appeared Here
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