Ethereum declined heavily recently below the $169.50 and $167.20 supports vs the US Dollar. ETH/USD traded as low as $153.22 and it is currently correcting higher towards key resistances.

Key Takeaways: ETH/USD

• Ethereum price is under pressure and is trading well below the $167.20 pivot against the US Dollar.
• ETH/USD is currently trading inside a contracting triangle with resistance near $162.00 on the 2-hours chart (data feed from Bitstamp).
• Bitcoin price dropped like a stone and broke the key $7,600 and $7,500 support levels.

Ethereum Price Analysis

Recently, bitcoin price struggled to correct higher and declined heavily below the $7,800 support area. It dragged Ethereum price lower below the $169.50 and $167.20 support levels.

Looking at the 2-hours chart, Ethereum price declined heavily after it settled below the $167.20 level and the 50 simple moving average (2-hours, purple). It opened the doors for more downsides below the $160.00 level.

The price traded as low as $153.22 and it is currently correcting higher above $158.00. Moreover, there was a break above the 23.6% Fib retracement level of the last dive from the $178.23 to $153.22.

However, the price is facing a lot of barriers on the upside near the $162.00 and $164.00 levels. At the outset, the price is trading inside a contracting triangle with resistance near $162.00 on the same chart. If there is an upside break, the price could correct higher towards the $165.50 resistance area.

Besides, there is a connecting bearish trend line forming with resistance near $165.50 on the same chart. Above the trend line, the price is likely to struggle near the $167.20 area (the previous support).

Conversely, if Ethereum fails to correct above $162.00 or $165.50, it is likely to resume its decline. An immediate support is near the $157.50 area, below which the price is likely to revisit the $153.50 swing low. Any further losses may perhaps call for a drop towards the $150.00 area.

Overall, ETH might correct higher in the short term, but upsides are likely to be capped by $165.50 or $167.20. Only a close above $170.00 might push the price back into a positive zone.