Ethereum price declined recently after trading near the $123.00 level. ETH/USD is now facing a major resistance near the $116.00-116.50 area.
- Ethereum price settled below the key $116.00 and $116.50 support levels.
- ETH/USD traded below an important declining channel with support at $116.00 on the 30-minute chart.
- The price is likely to decline towards the key $111.50 and $111.00 support levels.
Ethereum Price Analysis
Recently, there was a decent upward move above the $120.00 resistance in Ethereum price. Buyers even pushed the price above the $122.00 level, but they struggled near the $123.00 zone.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair traded as high as $123.10 and later started a bearish wave. It traded below the $120.00 support and the 25 simple moving average (30-min) to enter a negative zone.
Later, sellers pushed the price below the 50% Fib retracement level of the last wave from the $111.65 low to $123.10 high. More importantly, the price broke the key $116.00 and $116.50 support levels.
Finally, there was a break below an important declining channel with support at $116.00 on the same chart, which opened the doors for more losses. The price is currently trading below the 76.4% Fib retracement level of the last wave from the $111.65 low to $123.10 high.
An immediate support is near the $111.50 and $111.00 levels, which acted as a hurdle for sellers on many occasions recently. On the upside, an initial resistance is near the broke channel support at $115.50 and the 25 simple moving average (30-min).
However, the main resistance for buyers is near the previous $116.00 and $116.50 support levels. Above $116.50 and $117.00, the price could test the upper channel resistance trend line at $119.50.
Overall, Ethereum price settled below the key $116.00 and $116.50 support levels. If ETH buyers fail to defend the next major support at $111.00, there could be a sharp decline. On the other hand, a close above $116.50 is needed for a shift in the market sentiment.
The market data is provided by TradingView, Bitfinex.