- Ethereum price is facing a strong resistance near the $135 and $140 levels against the US Dollar.
- ETH price is under pressure and it might struggle to stay above the $125 support.
- There is a major bearish trend line forming with resistance near $134 on the 4-hours chart (data feed from Coinbase).
- The price remains at a risk of further losses unless it surpasses $134, $135 and $140.
Ethereum price is facing a couple of key hurdles against the US Dollar. ETH/USD is trading above $125, below which the bears could gain momentum.
Ethereum Price Analysis
After a decent upward move from the $116 low, Ethereum price traded close to the $135 resistance area against the US Dollar. However, ETH failed to continue above $135 and the 55 simple moving average (4-hours).
As a result, the price started a fresh decline from $135. More importantly, it seems like there is a major bearish trend line forming with resistance near $134 on the 4-hours chart.
At the moment, the price is trading below the 23.6% Fib retracement level of the upward move from the $116 low to $135 high. Moreover, the price is trading well below the $130 level and the 55 simple moving average (4-hours).
On the downside, an initial support is near the $125 zone. Besides, the 50% Fib retracement level of the upward move from the $116 low to $135 high is also near the $125 zone.
If there is a downside break below the $125 support, Ethereum price could restart its downtrend. The next key support is near the $123 level, which is close to the 61.8% Fib retracement level of the upward move from the $116 low to $135 high.
Any further losses may perhaps push the price towards the $120 support or the $116 swing low. On the upside, there are many hurdles near $134, $135, and the 55 simple moving average (4-hours).
Additionally, the price must climb above the $134 and $135 resistance levels to start a decent recovery. The next major hurdle is near the $140 level, above which it could rise towards the $145 zone.
Looking at the chart, Ethereum price is trading above the $125 support, but also facing many hurdles near $135. Therefore, it could either rally above $135 or extend its decline towards $116 in the near term.
Technical indicators
4 hours MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now well below the 50 level, with a bearish angle.
Key Support Levels – $125, followed by the $116 zone.
Key Resistance Levels – $135 and $140.
