Ethereum price failed to correct above the $134.00 resistance area and declined vs the US Dollar. ETH to USD is showing a few bearish signs and it could continue to move down below $108.00.
Key Takeaways: ETH/USD
- Ethereum price is trading below the key $120.80 and $125.50 resistance levels against the US Dollar.
- ETH/USD is trading inside a major contracting triangle with support near $108.00 on the 2-hours chart (data feed from Bitstamp).
- Bitcoin price is down more than 4% and it is likely to retest the $5,000 support area.
Ethereum Price Analysis
Recently, there was an upward move in Ethereum price above the $108.00 and $110.00 resistance levels. ETH to USD even broke the $115.00 resistance, but it struggled to continue above the $120.00 hurdle.
Looking at the 2-hours chart, Ethereum price struggled to stay above the $118.00 level. Besides, there was no convincing close above the 50% Fib retracement level of the downward move from $133.92 to $100.03.
It seems like the $120.00 region is acting as a strong barrier for the bulls along with the 50 simple moving average (2-hours, purple). Moreover, the 61.8% Fib retracement level of the downward move from $133.92 to $100.03 is acting as a resistance.
As a result, the price is showing a few negative signs and it is trading below the key $120.80 and $125.50 resistance levels. More importantly, Ethereum is trading inside a major contracting triangle with support near $108.00 on the same chart.
If there is a downside break below the trend line and the $108.00 support, there is a risk of more losses. The next key supports are near the $105.00 and $100.00 levels. If there is a clear break below the $100.00 handle, the price could tumble towards the $92.00 and $85.00 levels.
Conversely, Ethereum price must gain pace above the $118.00 and $120.00 resistance levels to start a decent upward move. The next resistance is near the $125.50 level, above which the bulls are likely to aim a test of the $134.00 resistance in the near term.