Ethereum failed to clear the $142 resistance and started a fresh decline against the US Dollar, similar to bitcoin. ETH price could soon test the main $120 support area, where the bulls might emerge.
ETH price is currently trading in a bearish zone below the $135 level against the US Dollar.
There are many hurdles on the upside, starting with $135 and up to $144.
There is a major bearish trend line forming with resistance near $135 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair remains in a downtrend as long as it is below $145 and the 100 simple moving average (4-hours).
Ethereum Price Could Extend its Decline
In the past few days, Ethereum made more than two attempts to gain strength above the $140 resistance against the US Dollar. However, ETH price failed to settle above the $140 level and the 100 simple moving average (4-hours).
As a result, a fresh decline initiated below the $136 and $135 support levels. There was a break below the 23.6% Fib retracement level of the upward move from the $108 swing low to $144 swing high.
Ethereum price even broke the $130 support area to move into a bearish zone. It is now trading near the 50% Fib retracement level of the upward move from the $108 swing low to $144 swing high.
On the upside, there is a major bearish trend line forming with resistance near $135 on the 4-hours chart of ETH/USD. If the price fails to stay above the $125 support area, it is likely to extend its decline.
The next key support is near the $120 level, where the bulls are likely to take a stand. Any further losses may perhaps open the doors for a larger decline towards the $105 and $100 support levels in the coming days.
If Ethereum price stays above the $120 support, it could bounce back and start a fresh increase. A clear break above the trend line and the $135 resistance might start an upward move.
The main resistance is still near the $144 level and the 100 simple moving average (4-hours). A successful close above the $144 resistance is needed for a strong rally towards the $155 and $160 levels.
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $120
Major Resistance Level – $144
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