Key Highlights

Ethereum price corrected sharply lower after trading to new weekly highs against the US Dollar and bitcoin. ETH/USD must stay above 100 SMA to bounce back.

Yesterday, we discussed a possible upward move above $150 in ETH price against the US Dollar. The ETH/USD pair gained traction and broke the $150 and $154 resistance levels. A new weekly high was formed at $159 and later the price corrected lower sharply. It broke the $150 and $145 support levels to enter a short term bearish zone. Besides, there was a break below the 50% Fib retracement level of the last move from the $124 low to $159 high.

More importantly, yesterdays highlighted key bullish trend line was breached with support at $141 on the hourly chart of ETH/USD. The pair even broke the $135 and $132 support levels and traded towards the 100 hourly simple moving average. If there is a downside break below the $124 low and the 100 SMA, there could be more declines. The next stop for sellers could be $116. It represents the 1.236 Fib extension level of the last move from the $124 low to $159 high. On the upside, the price is likely to face resistance near the $132 level, above which it could test $140.

Looking at the chart, ETH price clearly trimmed gains sharply from $159-160. It seems like buyers gave up around $160 and sellers took control. Therefore, there could be another push lower to fill orders near $116 or even $108.

Hourly MACD The MACD is back in the bearish zone.

Hourly RSI The RSI moved sharply below the 50 level.

Major Support Level $124

Major Resistance Level $140

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Ethereum Price Analysis: ETH Corrects Sharply, Can It Hold ...