Ethereum Price Analysis: ETH Sinks Below Key Support, Could Extend Losses

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Ethereum price declined heavily in the past few hours against the US Dollar and bitcoin. ETH/USD settled below $120 and it may continue to decline towards $110 or $106.

Ethereum Price Analysis

After a decent recovery, ETH price faced a strong selling interest above the $125 level against the US Dollar. The ETH/USD pair formed a top near the $126 level and later started a sharp decline. It broke the $122 support and the 100 hourly simple moving average. The decline was crucial since the price broke the $120 and $118 support levels to move into a bearish zone. Sellers even pushed the price below the $115 level and a new weekly low was formed near the $113 level.

Later, the price started consolidating losses above $113 and corrected a few points higher. It moved above the 23.6% Fib retracement level of the recent decline from the $124 high to $113 swing low. However, the previous support near the $118 level is acting as a strong resistance. Moreover, the 50% Fib retracement level of the recent decline from the $124 high to $113 swing low is positioned near $118. More importantly, there is a major bearish trend line formed with resistance at $121 on the hourly chart of ETH/USD.

Looking at the chart, ETH price clearly moved into a bearish zone below $120 and the 100 hourly simple moving average. As long as it is trading below $118 and $120, there is a risk of more losses. The next supports are at $110 and $106.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone, but with a bearish bias.

Hourly RSI – The RSI for ETH/USD is currently recovering above the 25 level, with a positive angle.

Major Support Level – $113

Major Resistance Level – $121

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