Ethereum Price Analysis: Risk Of Bounce Grows In ETH

  • Ethereum price declined further after it settled below the $140 support level against the US Dollar.
  • ETH broke the $132 support and traded close to the key $121-122 support area.
  • There is a crucial declining channel in place with resistance at $131 on the 4-hours chart (data feed from Coinbase).
  • The price is likely to bounce back as long as it is above the $121 and $122 support levels.

Ethereum price declined heavily below $140 and $130 against the US Dollar. ETH is now trading near a crucial support at $122 and it could bounce back sharply in the near term.

Ethereum Price Analysis

In the past few days, there was a steady decline in Ethereum price from the $165 swing high against the US Dollar. The ETH/USD pair broke the $148 and $140 support levels to move into a bearish zone. There was even a close below the$140 level and the 55 simple moving average (4-hours). The decline was such that the price even broke the $132 support area. Moreover, there was a break below the 1.236 Fib extension of the last wave from the $138 low to $165 high.

However, the price is now approaching the key $122 and $121 support levels. The mentioned $121 support acted as a resistance earlier and it is may now act as a solid support. Besides, the 1.618 Fib extension of the last wave from the $138 low to $165 high is near the $121 level.  Therefore, there is a significant risk of a sharp bounce in ETH as long as it is above the $121 support. On the upside, an initial resistance is near the $128 level. There is also a crucial declining channel in place with resistance at $131 on the 4-hours chart.

A break above the channel resistance could push the price towards $136 and the 55 simple moving average (4-hours). The main resistance is near the $140 level, where sellers may emerge. On the other hand, if the price breaks the $121 support, there could be a sharp decline.

Ethereum Price Analysis ETH Chart

Looking at the chart, Ethereum price is clearly trading near a crucial support at $121. If buyers defend the $121-122 support, there is a high chance of a solid rebound above $130 in the coming days. In the mentioned scenario, the price could rise towards the $138 and $140 resistances.

Technical indicators

4 hours MACD – The MACD for ETH/USD is slowly reducing its bearish slope, with hardly any bullish sign.

4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently correcting higher and it could test the 40 level.

Key Support Levels – $122, followed by the $120 zone.

Key Resistance Levels – $130 and $136.

The post Ethereum Price Analysis: Risk Of Bounce Grows In ETH appeared first on Live Bitcoin News.

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