Ethereum price is facing a strong resistance near the $109.00 level. ETH/USD may soon make the next major move either above $110.00 or towards $100.00.
- Ethereum price is currently consolidating below the $109.00 resistance level.
- ETH/USD needs to break a major bearish trend line with resistance at $108.30 on the 30-minute chart.
- The price could decline heavily if there is a break below the $105.00 and $104.00 supports.
Ethereum Price Analysis
Yesterday, we saw was a strong decline in Ethereum price below the $110.00 support. ETH traded close to the $100.00 support and formed a new monthly low at $103.20. Later, the price started an upside correction and traded above the $106.00 level.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair managed to move above the $107.00 level and the 25 simple moving average (30-min). There was also a break above the 23.6% Fib retracement level of the recent downside move from the $116.35 high to $103.20 swing low.
However, the price faced a strong selling interest near the $108.50 level. The chart suggests that there were two rejections near $108.50 and later there were consolidation moves.
More importantly, there is a major bearish trend line in place with resistance at $108.30 on the same chart. A successful break above the trend line and $108.50 may push the price towards the $110.00 level and the 50% Fib retracement level of the recent downside move from the $116.35 high to $103.20 swing low.
Additionally, if buyers gain strength above $110.0, the price may stage a solid comeback and it could recover towards the $115.00 level. On the flip side, if there is no upside break and the price declines below the $105.00 support area, then sellers are likely to take control.
The current price action indicates that Ethereum price might make another attempt to clear the $108.50 resistance. The chances of buyers succeeding are less, but if they gain momentum, ETH could start a decent recovery in the short term.
The market data is provided by TradingView, Bitfinex.