Ethereum Down 5%, But Market Sentiment Is Still Positive

  • Ethereum is down more than 5% and it broke the $130 support area against the US Dollar.
  • The price is currently testing the $125 and $126 support levels, with a positive bias.
  • Earlier, there was a break below a contracting triangle with support near $132 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin is down around 4% and it is now trading below the $7,400 level.

Ethereum price is back to a key support zone versus the US Dollar and bitcoin. ETH price must stay above the $125 support to bounce back in the near term.

Ethereum Price Analysis

Yesterday, we saw a decent increase in Ethereum price above the $130 resistance against the US Dollar. Moreover, ETH price rallied above the 100 hourly simple moving average and $132.

However, the $135 level once again acted as a strong resistance. A swing high was formed near $135 and the price started a downside correction. The bears succeeded in surpassing the $132 and $130 support levels.

Besides, there was a break below a contracting triangle with support near $132 on the hourly chart of ETH/USD. The pair even traded below $128 and the 100 hourly simple moving average.

Finally, the price tested the main $125 and $126 support levels. A low is formed near $126 and the price is currently consolidating losses. It is trading near the 23.6% Fib retracement level of the recent drop from the $135 high to $126 low.

On the upside, the first key resistance is near the $130 level and the 100 hourly simple moving average. Additionally, the 50% Fib retracement level of the recent drop from the $135 high to $126 low is near the $130 level.

Therefore, a successful close above the $130 resistance is needed for a fresh increase. The next major resistance is near the $135 level, above which Ethereum price could rally towards the $140 and $142 levels.

On the other hand, the price could fail to recover above $128 and $130. On the downside, the $125 and $126 support levels are very important. If there is a downside break below the $125 support, the price could turn bearish and start a fresh decline.

Ethereum Price  ETH

Ethereum Price

Looking at the chart, Ethereum price is back to the key $125 support area. As long as it is above the $125 zone, there are chances of a fresh increase towards $130 and $135.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSIThe RSI for ETH/USD is now well below the 40 level, with negative signs.

Major Support Level – $125

Major Resistance Level – $130

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Source: Newsbtc

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