Ether’s price declined heavily below key supports against the US dollar and bitcoin. ETH/USD may correct a few points, but there is a risk of more losses in the short term.
Ether’s price reacted to the downside and declined below the $148.00 support against the US dollar.
ETH/USD broke a major bullish trendline with support at $152.00 on the 6-hour chart.
ETH/BTC fell sharply and broke the 0.0365BTC and 0.0355BTC supports.
Technically, the 6-hour chart are gaining momentum in the bearish territory.
Ether Price Analysis
Yesterday, we discussed that ETH could react to the downside if there is a clear break below $150.00 and $148.00. The pair declined sharply below $148.00 and it even traded below the $140.00 support level.
ETH/BTC followed a similar structure and traded below the 0.0365BTC and 0.0355BTC support levels. The pair is currently trading below 0.0350BTC and it may perhaps decline further toward 0.0332BTC.
Starting with the 6-hour chart of ETH/USD, the pair clearly struggled to surpass the $160.00-162.00 resistance. Later, there was a contracting triangle formed above the $150.00 support. Buyers failed to protect losses and the price declined below $150.00 and a major bullish trendline, with support at $152.00.
After the bearish break, Ether’s price declined heavily below $148.00, $145.00 and $140.00. It tested the $130.00-132.00 support zone where buyers emerged. However, the current price action is indicating more declines below $130.00. The next major support is at $125.00, followed by $120.00.
Moving down to the 2-hour chart of ETH/USD, the pair declined heavily below $148.00 and traded as low as $130.85. In the short term, there could be an upside correction toward the $135.00 level, above which the price may test the 23.6 percent Fibonacci retracement level of the last recent decline from the $163.57 high to $130.85 low near $138.00.
To sum up, Ether turned bearish near term below $148.00 and it could continue to decline. The main support is at $125.00, below which ETH/USD will most likely struggle to recover in the coming days.
Important Resistance Levels
$135.00 and $138.00
Important Support Levels
$130.00 and $125.00
The RSI is moving lower toward the 20 level.
The MACD is placed heavily in the bearish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging.
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