- ETH price failed to hold gains above the $105 level and declined sharply against the US Dollar.
- There was a break below a major bullish trend line with support at $105 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair might correct higher in the short term, but the $106 and $107 levels are likely to prevent gains.
Ethereum price started a fresh decline against the US Dollar and bitcoin. ETH/USD is still at a risk of a major downside break if the $100 support fails to hold.
Ethereum Price Analysis
After a decent upside correction, ETH price faced a strong resistance near the $110 level against the US Dollar. The ETH/USD pair topped near the $111 level and started a fresh decline. It broke the $107 support to enter a bearish zone. Later, buyers were able to push the price below the 50% Fib retracement level of the last leg from the $101 low to $111 high. More importantly, there was a break and close below $105 plus the 100 hourly simple moving average.
During the decline, there was a break below a major bullish trend line with support at $105 on the hourly chart of ETH/USD. The pair is now trading in a bearish zone below the $105 level and the 100 hourly SMA. An initial support is near the $103 level. It coincides with the 76.4% Fib retracement level of the last leg from the $101 low to $111 high. If the price fails to stay above the $103 level, there is a risk of a drop to $101. The main support remains at $100, below which sellers are likely to take control.
Looking at the chart, ETH price might correct higher in the short term, but there are many hurdles on the upside near $106. The key resistance is near the $107 level and the 100 hourly SMA, above which the price may retest $110.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD has moved back in the bearish zone.
Hourly RSI – The RSI for ETH/USD declined and moved below the 50 level, with a bearish angle.
Major Support Level – $101
Major Resistance Level – $107
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Author: Alicia P