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- ETH price made many swing highs and later declined below the $131 support against the US Dollar.
- The price is now trading well below the $135 resistance and the 100 hourly simple moving average.
- There was a break below a major triangle with support at $131 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down and it could test the $126 or $125 support level in the near term.
Ethereum price is under pressure below key resistances against the US Dollar and bitcoin. ETH/USD remains a sell until buyers manage to push the price above the $134-135 resistance area.
Ethereum Price Analysis
This past week, we saw how ETH price struggled near the $139 and $140 resistances against the US Dollar. The ETH/USD pair made many attempts to break higher towards $145, but it failed. Recently, it formed many swing highs such as $140, $138 and $135 before it started a downside move. Sellers gained pace below the $134 support, with a strong negative angle. There was a sharp drop below the $130 support and the price settled well below the 100 hourly simple moving average.
During the decline, there was a break below a major triangle with support at $131 on the hourly chart of ETH/USD. The pair even broke the $128 support and traded close to the $127 level. Later, there was a minor bounce above the $128 level. The price recovered above the 23.6% Fib retracement level of the recent decline from the $135 swing high to $127 low. However, the recovery remained capped by the $130 zone. It seems like there is a strong resistance formed near the $131 zone. Besides, the 50% Fib retracement level of the recent decline from the $135 swing high to $127 low is also near $131.
Above the $131 resistance, the next key resistance is near the $134 and $135 levels. More importantly, buyers need to push the price above $136 and the 100 hourly SMA for a sustained move higher. If they fail, there are chances of more losses below the $127 swing low.
Looking at the chart, ETH price is clearly trading in a bearish zone below the $134 and $131 resistance levels. There could be a short term upside correction, but sellers remain in control below $134. On the downside, an initial support is at $126, followed by the $125 pivot level.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is placed heavily in the bearish zone.
Hourly RSI – The RSI for ETH/USD moved down sharply below the 30 level, with a bearish angle.
Major Support Level – $126
Major Resistance Level – $134
