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HomeAltcoin NewsEthereum Price Analysis: ETH Approaching Crucial Support, Should U Buy?

Ethereum Price Analysis: ETH Approaching Crucial Support, Should U Buy?

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  • Ethereum price topped near the $165 level recently and later declined sharply against the US Dollar.
  • ETH traded below the $148 and $140 support levels to move into a short term bearish zone.
  • There is a major bullish trend line formed with support at $130 on the 4-hours chart (data feed from Coinbase).
  • The price is likely to find a strong buying interest if it declines towards the $130 support area.

Ethereum price nosedived from the $165 swing high against the US Dollar. ETH broke the $140 support level, but it could find a strong buying interest near the $130 support area.

Ethereum Price Analysis

This past week, there was a sharp upward move above the $140 resistance in Ethereum price against the US Dollar. The ETH/USD pair even broke the $148 resistance and traded above the $160 level. It traded towards the $165-166 resistance zone, where sellers took a stand. The price topped near the $165 level and later declined sharply. It broke many supports such as $152, $148, $142, $140 and $137. Besides, the price broke the 50% Fib retracement level of the last rise from the $119 low to $165 high.

There was even a close below the $148 level and the 55 simple moving average (4-hours). It opened the doors for more losses and the price traded towards the $130 support. It traded close to the 76.4% Fib retracement level of the last rise from the $119 low to $165 high. Later, the price recovered above the $137 and $138 levels. However, the recovery was capped by the $140 resistance and the 55 simple moving average (4-hours).

Therefore, there are chances of a minor dip in ETH price below the $135 level in the short term. On the downside, there is a strong support formed near the $129-130 zone. There is also a major bullish trend line formed with support at $130 on the 4-hours chart. Should ETH decline below the $130 support, the price could accelerate losses towards the $125 support area.

Ethereum Price Analysis ETH Chart

Looking at the chart, Ethereum price is trading nicely above key supports near $130. The recent decline was discouraging, but as long as the price is above $125 and $130, there are chances of a fresh bullish wave. On the upside, the price must break the $144 and $146 levels to enter a positive zone.

Technical indicators

4 hours MACD – The MACD for ETH/USD is currently placed in the bearish zone, with a few positive signs.

4 hours RSI (Relative Strength Index) – The RSI for ETH/USD settled below the 50 level, with a bearish structure.

Key Support Levels – $130, followed by the $125 zone.

Key Resistance Levels – $144 and $146.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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