Ethereum price topped near the $122.00 level and declined heavily. ETH/USD broke the $116.20 and $112.60 support levels to enter a bearish trend.
- Ethereum price settled below the key $116.20 support level, which is a bearish sign.
- ETH/USD is likely to face sellers near a major bearish trend line with resistance at $114.00 on the 30-minute chart.
- The price could extend the current slide and it may even test the $100.00 support zone.
Ethereum Price Analysis
After a few rejections near the $122.00 and $124.00 levels, Ethereum price started a downward move. ETH/USD broke the $118.00, $116.20 and $112.60 support levels, signaling a change in the trend from neutral to bearish.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair even broke the $110.00 level and settled below the 25 simple moving average (30-min). During the slide, there was a break below a couple of connecting bullish trend lines at $118.00 and $113.00.
A new monthly low was formed at $108.87 and there are no signs of a short term correction. An initial hurdle for buyers is near the $110.60 level and the 23.6% Fib retracement level of the recent slide from the $116.41 high to $108.87 low.
However, the main resistance is near the previous support at $112.60. It now coincides with the 50% Fib retracement level of the recent slide from the $116.41 high to $108.87 low.
Besides, there is a major bearish trend line in place with resistance at $114.00 on the same chart. An intermediate resistance is near $113.00 and the 25 simple moving average (30-min). Therefore, if Ethereum corrects higher from the current levels, there could be a strong selling interest near the $112.60, $113.00 and $114.00 levels.
Once Ethereum price completes a short term correction, it is likely to resume its decline. On the downside, an immediate support is at $106.50, below which ETH might drop towards the $100.00 level, which is a significant support. Conversely, a break and close above $114.00 may push the price towards $116.20 or $118.00.
The market data is provided by TradingView, Bitfinex.