Ethereum price is trading below important resistances against the US Dollar and bitcoin . ETH must break the $138 and $140 resistance to avoid a sharp downside reaction in the near term.
Recently, we saw a downside correction in ETH price below the $140 and $138 supports against the US Dollar. The ETH/USD pair tested the $135 support level and later started consolidating in a range. It recovered a few points above the $136 level and the 100 hourly simple moving average. There was also a break above the 23.6% Fib retracement level of the last drop from the $141 high to $135 low. However, the price faced a strong resistance near the $138 and $139 levels.
Sellers defended the 50% Fib retracement level of the last drop from the $141 high to $135 low. More importantly, yesterday’s key bearish trend line is intact with resistance near $138 on the hourly chart of ETH/USD. Therefore, there is a strong resistance formed near $138. A proper close above the trend line could push the price towards the $141 resistance area. Once there is a follow through above the $141 swing high, the price may continue to rise towards the $144 and $145 levels.
On the other hand, if buyers fail to gain strength above the trend line and $139, there could be a sharp decline. An immediate support is near the $135 level. However, in the mentioned bearish scenario, there are chances of a fresh weekly low near the $133 or $132 support. If there are more declines, the price could head towards the key $129 support area.
Looking at the chart , ETH price is clearly trading near a crucial juncture below $138 and $139. A continuous failure to gain bullish momentum above $138 is likely to result in a bearish reaction. Sellers are likely to take control below $135 and the price may move into a short term bearish zone. The key supports to watch are $133 and $129.
Hourly MACD – The MACD for ETH/USD is currently flat in the bearish zone.
Hourly RSI – The RSI for ETH/USD recently dipped below the 50 level with a bearish angle and tested the 40 level.
Major Support Level – $135
Major Resistance Level – $138
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