Ethereum price extended losses below the $135.50 and $133.50 supports. ETH/USD is currently correcting higher, but upsides remain capped near $136.80.
- Ethereum price declined to a new weekly low at $130.49 before correcting higher.
- A significant bearish trend line is formed with resistance at $137.00 on the 30-minute chart.
- ETH price could correct higher towards $136.00 or $137.00, but sellers remain in control.
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Ethereum Price Analysis
Yesterday, we discussed renewed risk of more declines in Ethereum price below the $136.70 support. ETH/USD did move down, broke the $135.50 and $133.50 support levels to trade to a new weekly low.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair traded as low as $130.49 and settled below the 25 simple moving average (30-min). Later, the price started an upside correction and traded above the $132.00 resistance.
It climbed above the 23.6% Fib retracement level of the recent drop from the $136.81 high to $130.49 low. The price is currently facing resistance near the previous support at $133.50.
The next key resistance is near the $134.80 level, the 25 simple moving average (30-min), and the 61.8% Fib retracement level of the recent drop from the $136.81 high to $130.49 low. However, the main resistance for buyers is near the $135.40-136.70 area.
Furthermore, there is a significant bearish trend line formed with resistance at $137.00. Therefore, if the price corrects higher towards the $136.00 and $137.00 levels, it is likely to face a strong selling interest. Only a successful hourly close above the $137.00 level may decrease selling pressure in the coming sessions.
On the downside, an initial support is near the $131.00 level. It seems like there are partial chances of a double bottom pattern near the $131.00 level. Having said that, the price still needs to clear the $136.00 and $137.00 resistance levels to start a decent upward move.
In the short term, there could be range moves in Ethereum price below the $136.00 resistance before ETH/USD either climbs above $137.00 or breaks the $131.00 support area.
The market data is provided by TradingView, Bitfinex.