- ETH price declined recently, tested the $100 support, and later recovered against the US Dollar.
- There is a major bearish trend line formed with resistance near $105 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to face a strong resistance near $105 and the 100 hourly simple moving average.
Ethereum price started a short term correction against the US Dollar and bitcoin. ETH/USD is likely to fail near $105 or $107 and it will most likely resume its slide.
Ethereum Price Analysis
Yesterday, there was a major downside move below the $105 support in ETH price against the US Dollar. The ETH/USD pair declined sharply below the $105 level and traded towards the $100 level. The price even settled below the $105 level and the 100 hourly simple moving average. After testing the $100 support, the price started a short term upside correction. It traded above the 50% Fib retracement level of the recent decline from the $107 high to $100 low. However, the price faced a strong resistance near $105 and the 100 hourly simple moving average.
Additionally, the price failed to gain strength above the 61.8% Fib retracement level of the recent decline from the $107 high to $100 low. More importantly, there is a major bearish trend line formed with resistance near $105 on the hourly chart of ETH/USD. The pair is currently consolidating below the trend line, $105 and the 100 hourly SMA. To recover further, the price must break $105 and the 100 hourly SMA. The next crucial resistance is near the $107 level, which acted as a hurdle on many occasions in the past. On the other hand, if the price fails to move above $105, it could resume its decline.
Looking at the chart, ETH price is clearly facing an uphill task near $105 and $107. Therefore, there is a risk of a fresh drop towards the $102 and $100 levels.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD moved back in the bullish zone.
Hourly RSI – The RSI for ETH/USD jumped above the 50 level, with a positive angle.
Major Support Level – $102
Major Resistance Level – $105
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