Ethereum price failed to stay above the $130.00 resistance and declined sharply. ETH/USD dropped more than $20.00 and spiked below the $110.00 level before staging a recovery.
- Ethereum price declined below the $126.00 and $117.50 support levels.
- ETH/USD if trading below two bearish trend lines with resistance at $118.40 and $122.00 on the 30-minute chart.
- The price remains at a risk of more losses and it could revisit the $110.00 level in the near term.
Ethereum Price Analysis
After trading as high as $132.36, there was a sharp bearish reaction in Ethereum price. Sellers gained control below the $130.00 and $126.00 supports to start a major decline. The price even broke the $117.50 and $112.00 support levels.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair spiked below the $110.00 level and traded as low as $107.51. Later, there was a sharp recovery above the $112.00 level and the 23.6% Fib retracement level of the recent drop from the $132.36 high to $107.51 low.
The price even managed to move back above the $117.50 level, but it failed to clear the $122.00 resistance. Sellers also defended the 50% Fib retracement level of the recent drop from the $132.36 high to $107.51 low.
At the moment, the price is trading below the $117.50 level and the 25 simple moving average (30-min). On the upside, there are two bearish trend lines formed with resistance at $118.40 and $122.00 on the same chart.
Therefore, a major upward move is very unlikely unless buyers gain strength above the $120.00 and $122.00 resistance levels. If they fail to surpass the mentioned resistance, the price could resume its slide towards the $112.00 and $110.00 support levels.
More importantly, Ethereum remains at a risk of a downside break towards the $100.00 handle if buyers continue to struggle. The main support is at $110.00 and $107.00, below which the price may even decline below the $100.00 support area in the coming days.
The market data is provided by TradingView, Bitfinex.