Key Points

  • Ethereum price rallied above the $150 resistance before sellers appeared near $160 against the US Dollar.
  • ETH declined sharply towards a major bullish trend line with support at $118 on the 4-hours chart (data feed from Coinbase).
  • The price is likely to find a strong support near the $118 and $120 levels in the near term.

Ethereum price rally found a solid barrier near the $159-160 zone against the US Dollar. ETH corrected lower sharply, but it could find support near $120.

Ethereum Price Analysis

This past week, we discussed the chances of more gains above $100 and $110 in Ethereum price against the US Dollar. The ETH/USD pair gained traction and broke the $120 and $135 resistance levels. There was also a close above the $135 level and the 55 simple moving average (4-hours). The price even broke the $150 resistance and traded as high as $159.55.

Later, there was a sharp downside correction and the price declined below $144, $140 and $138. There was also a break below the 23.6% Fib retracement level of the last wave from the $81 low to $159 swing high. However, the price is now approaching a major support area near $120. There is also a key bullish trend line formed with support at $118 on the 4-hours chart. Besides, the 50% Fib retracement level of the last wave from the $81 low to $159 swing high is also near $120. Therefore, the $118 and $120 support levels are likely to act as strong buy zones in the near term.

Ethereum Price Analysis ETH Chart

Looking at the chart, Ethereum price could bounce back after testing the $120 support. On the upside, it must clear the $135 and $140 resistance levels to start a new upward move. The next resistance is at $144 and $150.

Looking at the technical indicators:

4-hours MACD – The MACD for ETH/USD is slightly in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is just near the 50 level.

Key Support Level – $120

Key Resistance Level – $135

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