Ethereum is trading in a tight range above the $110 support area against the US Dollar. ETH price must break the $132 and $144 resistance levels to start a fresh increase.
- Ethereum is currently consolidating below the key $144 resistance area against the US Dollar.
- The price remains well supported on the downside near the lower end of the range at $110.
- There is a major bearish trend line forming with resistance near $140 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is also consolidating above the $4,800 and $5,000 support levels.
Ethereum Price Setting Up For Next Break
In the past two days, Ethereum mostly traded in a range above the $100 handle against the US Dollar. ETH price seems to be forming a major range between the $110 and $140 levels.
The key swing low was near the $90 level before the price recovered towards the $145 level. It failed to continue above the $145 level and remained well below the 100 hourly simple moving average.
Recently, there was a minor downward move below the $135 level. Ethereum price settled below the 23.6% Fib retracement level of the recovery wave from the $90 low to $145 high.
On the downside, the $120 and $118 levels are acting as decent supports. Besides, the 50% Fib retracement level of the recovery wave from the $90 low to $145 high is also providing support.
On the upside, there are a few key hurdles forming near the $132 and $140 levels. There is also a major bearish trend line forming with resistance near $140 on the hourly chart of ETH/USD. The trend line resistance and $142 are close to the 100 hourly simple moving average.
Therefore, the price must surpass the $142 resistance level and the 100 hourly simple moving average to start a strong increase in the near term. The next major resistance is seen near the $155 and $160 levels.
Chances of More Losses
If Ethereum fails to recover above the $132 and $140 resistance levels, there is a risk of more losses. An initial support is near the $118 level.
The first major support is near the $110 level, below which the price could accelerate lower. The next key support is near the $102 and $100 levels, where the bulls might emerge.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently just below the 45 level, with a bearish angle.
Major Support Level – $118
Major Resistance Level – $140