- Ethereum is down 5% again today and it broke the $130 support area against the US Dollar.
- The price is now trading near key support levels such as $120 and $122.
- There is a short term bearish trend line forming with resistance near $126 on the hourly chart of ETH/USD (data feed via Kraken).
- The price could start a decent recovery towards $130 or even $135 as long as it is above $120.
- Similarly, bitcoin dived more than 4% and tested the $6,600-$6,500 support area.
Ethereum price is trading near major supports after a strong decline versus the US Dollar, similar to bitcoin. ETH price must stay above $120 to start a solid recovery.
Ethereum Price Analysis
There were additional losses witness in Ethereum below the $130 support area against the US Dollar. It seems like all bearish targets as discussed in the weekly forecast for ETH price were achieved such as $132 and $125.
Moreover, the price gained bearish momentum below the $125 support and settled well below the 100 hourly simple moving average. It opened the doors for more losses and the price traded towards the key $122 and $120 support levels.
A new monthly low was formed near $120 and the price is currently correcting higher. Ethereum already surpassed the 23.6% Fib retracement level of the recent slide from the $132 high to $120 low.
However, the price is now approaching the $125-$126 resistance area. Besides, there is a short term bearish trend line forming with resistance near $126 on the hourly chart of ETH/USD.
The trend line is close to the 50% Fib retracement level of the recent slide from the $132 high to $120 low. Therefore, the price must surpass the $125-$126 resistance zone to recover further.
The next major resistance could be near the $130 level (the recent breakdown support). If there are any additional gains, the bulls are likely to target the $135 resistance area and the 100 hourly simple moving average.
Conversely, the bulls might struggle to clear the $125-$126 resistance area. In the mentioned case, there is a risk of a fresh decline below the $120 support area in the near term.
Looking at the chart, Ethereum price is holding the $120 support and correcting higher. Having said that, the bears are still in control unless the bulls make an effort to push the price back above $126 and $130 to start a recovery.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting higher and moving towards the 40 level.
Major Support Level – $120
Major Resistance Level – $126