Ethereum Price (ETH) In Corrective Decrease But Likely To Bounce Back

  • ETH price is slowly moving down and recently broke the $180 support area against the US Dollar.
  • The price could soon test the $172 or $170 level before it starts a fresh increase.
  • Yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is still trading in a positive zone as long as there is no close below the $170 support.

Ethereum price is in a corrective decrease versus the US Dollar, while bitcoin is consolidating. ETH price might extend its decline to $172 before it could climb again.

Ethereum Price Analysis

After forming a short term top near $186, ETH price started a downside correction against the US Dollar. It broke the $180 support level and the 100 hourly simple moving average to enter a negative zone. Moreover, the recent decline in bitcoin pushed Ethereum below the $178 level. The decline was such that the price tested the $175 support level and it is currently consolidating losses.

It corrected above the $176 level plus 23.6% Fib retracement level of the last drop from the $186 high to $175 swing low. However, the previous support area near the $180 level is acting as a resistance. Besides, the 100 hourly SMA is also preventing gains near $179. More importantly, yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD.

Above the trend line, the next key resistance is near the $180 level. It coincides with the 50% Fib retracement level of the last drop from the $186 high to $175 swing low. If there is an upside break above the trend line, the 100 hourly SMA, and $180, then the price could start a fresh increase. The next key resistance area is near the $185 level, above which the price could accelerate higher.

On the downside, there is a decent support forming near the $175 level. However, it seems like there could be a downside spike before the price starts a fresh increase above the $180 level.

Looking at the chart, Ethereum price is clearly grinding lower below the $180 level. It seems like the price could test the $172 level before it attempts a decent upward move. Any further losses may perhaps push the price towards the key $170 support level. Overall, the price is likely to complete its correction near $172 or $170 before it could rise again.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is showing a few bearish signs.

Hourly RSIThe RSI for ETH/USD is currently below the 50 level, with a bearish angle.

Major Support Level – $172

Major Resistance Level – $180

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