Ethereum price declined heavily during the past few hours against the US Dollar and bitcoin. ETH/USD could test $110 or $105 if it fails to recover above $128 and $136.
Yesterday, we saw a solid support near the $144-146 zone for ETH price against the US Dollar. The ETH/USD pair recently failed to break the $150-151 zone and a bearish trend line. It resulted in a sharp bearish reaction and the price declined below the $146 and $144 supports. Sellers gained control and pushed the price below the $130 level. There was even a close below the $130 level and the 100 hourly simple moving average. A low was formed near $122 and later the price started consolidating losses.
An initial resistance is the 23.6% Fib retracement level of the recent drop from the $151 high to $122 swing low. Moreover, there is also a short term bearish trend line formed with resistance at $128 on the hourly chart of ETH/USD. If there is a break above the trend line and $128, the price may recover further. The next key resistance is near the $126 level. The stated level represents the 50% Fib retracement level of the recent drop from the $151 high to $122 swing low. A proper close above the $136 level is needed for a decent recovery in the near term.
Looking at the chart, ETH price clearly made a sharp U-turn below the $146 support. As long as the price is below $136, there is a risk of more losses. A break below $122 and $121 may push the price towards $110.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone, but the overall bias is still negative.
Hourly RSI – The RSI for ETH/USD is currently recovering from the oversold zone.
Major Support Level – $121
Major Resistance Level – $136