- ETH price declined heavily after it broke the $200 and $190 supports against the US Dollar.
- There is a short term contracting triangle formed with resistance at $178 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but upsides are likely to be capped near $180 or $185.
Ethereum price declined heavily against the US Dollar and bitcoin. ETH/USD tested the $165 level and it remains at a risk of more losses.
Ethereum Price Analysis
There was a nasty decline in ETH price below the $200 support area against the US Dollar. Bitcoin price tumbled heavily, which increased selling pressure and pushed the ETH/USD pair below the $180 and $170 levels. The price traded to a new monthly low at $165 and it is currently well below the 100 hourly simple moving average. At the moment, the price is consolidating losses above the $165 level with a bearish angle.
It recovered above the 23.6% Fib retracement level of the recent drop from the $205 high to $165 low. However, the upside move faced a strong resistance near the $180 level. More importantly, there is a short term contracting triangle formed with resistance at $178 on the hourly chart of ETH/USD. The pair may continue to move in a range below $180 before it makes the next move. If there is a downside break below $170, the price could trade below the $165 low. The next major support is close to the $150 level. On the other hand, a break above $180 is likely to face sellers near $185. It represents the 50% Fib retracement level of the recent drop from the $205 high to $165 low.
Looking at the chart, ETH price remains at a risk of more losses below $170 and $165. Selling rallies close to $180 or $185 can be considered as long as there is no close above $200.
Hourly MACD – The MACD is slightly in the bullish zone.
Hourly RSI – The RSI is currently near the 30 level.
Major Support Level – $165
Major Resistance Level – $180
Author: Aayush Jindal