Ethereum price declined sharply after the Binance exchange lost 7,000 BTC in a large scale security breach. ETH broke the key $179.00 support level and tested the $170.00 support area.
- Ethereum price traded to a new 2019 high at $191.83 at Bitfinex and later declined sharply.
- A bearish trend line is forming with resistance near $181.00 on the 30-minute chart.
- ETH price remains well supported on the downside near the $172.00 and $170.00 levels.
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Ethereum Price Analysis (ETH to USD)
Recently, we saw a strong rise in bitcoin and Ethereum price. ETH price surged above the $185.00 level and traded to a new 2019 high at $191.83 at Bitfinex. Later, there was a downside correction below $188.00, which got traction after the Binance exchange lost 7,000 BTC in a large scale security breach.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair declined heavily below the $188.00 and $179.00 support levels. There was even a close below the $179.00 support level and the 25 simple moving average (30-min).
There was a spike below the $172.00 and $170.00 support levels. A swing low was formed at $169.17 and the price bounced back above $172.00. It is currently trading near the 50% Fib retracement level of the recent decline from the $183.82 high to $169.17 low.
An immediate resistance is near the $179.00 level and the 25 simple moving average (30-min). The 61.8% Fib retracement level of the recent decline from the $183.82 high to $169.17 low is also near the $179.00 level.
Moreover, there is a bearish trend line is forming with resistance near $181.00 on the same chart. Therefore, the price should clear the $179.00 and $181.00 resistance levels to start a fresh increase.
In the short term, there may be swing moves, but the price is likely to find a strong buying interest near the $172.00 and $170.00 levels.
Therefore, Ethereum price is likely to start a fresh upward move above $179.00 as long as it is trading above the $170.00 support area. Conversely, a close below $170.00 might call for additional weakness towards $156.00.
The market data is provided by TradingView, Bitfinex.