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The price of Ethereum decreased recently after trading close to the $ 123.00 level. ETH / USD is facing strong resistance near the $ 116.00-116.50 area.
- The price of Ethereum has stabilized below the key levels of $ 116.00 and $ 116.50.
- ETH / USD traded below an important declining channel with support for $ 116.00 on the 30-minute chart.
- The price is likely to decline towards the main support levels $ 111.50 and $ 111.00.
Price analysis of Ethereum
Recently, there was a decent upward move above the resistance of $ 120.00 in the price of Ethereum. The buyers even pushed the price above the $ 122.00 level, but they struggled close to the $ 123.00 zone.
Click to enlarge the chart
Looking at the 30-minute ETH / USD chart, the pair traded at $ 123.10 and then started a bearish wave. It traded under the $ 120.00 support and the 25-minute (30-minute) moving average to enter a negative zone.
Subsequently, the sellers pushed the price below the Fib 50% retracement level of the last wave from the low of $ 111.65 to $ 123.10 high. More importantly, the price broke the key levels of $ 116.00 and $ 116.50.
Finally, there was a break below an important declining channel with support for $ 116.00 on the same chart, which opened the door to further losses. The price is currently trading below the Fib retracement level at 11.4% from the low of $ 111.65 to $ 123.10.
Immediate support is close to the levels of $ 111.50 and $ 111.00, which have recently acted as an obstacle for sellers. On the upside, an initial resistance is close to the broken channel support at $ 115.50 and the 25 simple (30 minute) moving average.
However, the main resistance for buyers is close to the previous support levels of $ 116.00 and $ 116.50. Over $ 116.50 and $ 117.00, the price could test the channel resistance trend line above $ 119.50.
Overall, the price of Ethereum has stabilized below the key support levels of $ 116.00 and $ 116.50. If ETH buyers fail to defend the next major support at $ 111.00, there may be a sharp decline. On the other hand, a close above $ 116.50 is required for a change in market sentiment.
Market data is provided by TradingView, Bitfinex.
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