Ethereum Price Analysis: ETH Could Turn Bearish Again Below $134
The price started a downside move, with an increase in selling pressure below the $138 level.
Yesterdays highlighted ascending channel with support at $137 was breached on the hourly chart of ETH/USD (data feed via Kraken).
The pair could decline sharply if sellers manage to push the price below the $134 support level.
Ethereum price is struggling to hold recent gains against the US Dollar and bitcoin. ETH/USD is now at a risk of a downside break if the $134 support fails to hold the current decline.
Ethereum Price Analysis
In the past few sessions, ETH price faced a strong barrier near the $139 and $140 resistance levels against the US Dollar. The ETH/USD pair made a couple of attempts to surpass the $140 barrier, but buyers failed to gain momentum. The last swing high was formed just below $140 before the price started a fresh downside move. Sellers gained pace and pushed the price below the $138 and $136 support levels.
During the decline, yesterdays highlighted ascending channel with support at $137 was breached on the hourly chart of ETH/USD. The pair dropped sharply towards the $134 support level, where buyers emerged. More importantly, the 100 hourly simple moving average acted as a strong support near the $134 level. Later, the price recovered above the $135 level and the 50% Fib retracement level of the recent drop from the $140 swing high to $134 low. However, the upside move was capped by the broken channel trend line and the $137.50 level.
Besides, the 61.8% Fib retracement level of the recent drop from the $140 swing high to $134 low acted as a significant resistance. The price fails to move above $138 and it is currently following a bearish path. On the downside, the $134 support and the 100 hourly SMA are important barriers for sellers. If they succeed in taking out $134, there could be a sharp drop in Ethereum price below the $132 level. The next key support is near the $129 level, which was a resistance earlier.
Looking at the chart, ETH price is clearly facing a strong barrier near the $138, $139 and $140 resistance levels. As long as the price is below $140, there is a risk of a fresh decline below the $134 and $132 levels. The next important support could be near the $129-130 zone.
ETH Technical Indicators
Hourly MACD The MACD for ETH/USD is showing a few negative signs in the bearish zone.
Hourly RSI – The RSI for ETH/USD declined steadily and moved below the 50 level< with a bearish angle.
Major Support Level $134
Major Resistance Level $140
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