Yesterday, we discussed a possible downside break below $121 and $118 in ETH price against the US Dollar. The ETH/USD pair failed to break the $130-132 resistance zone and started a downside move. There was a break below the key $121 support, opening the doors for more losses in the near term. The price broke the $118 and $116 support levels, and it settled below the 100 hourly simple moving average.
A low was formed near $112 and the price is currently consolidating losses. An initial resistance is near $117 and the 23.6% Fib retracement level of the recent decline from the $132 swing high to $112 low. More importantly, yesterday’s key bearish trend line is intact with resistance at $128 on the hourly chart of ETH/USD. If the price corrects higher in the short term, it could face sellers near the $118 and $121 resistance levels. The next resistance is the 50% Fib retracement level of the recent decline from the $132 swing high to $112 low. To recover, the price must break $128, 100 SMA, and the bearish trend line.
Looking at the chart, ETH price moved into a bearish zone below the $126 and $121 levels. There could be a short term correction, but the price may face sellers near $121 and $128. On the downside, the next key support is at $106.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI – The RSI is now placed well below the 40 level.
Major Support Level – $106
Major Resistance Level – $128