Ethereum price broke the $130.00 support and tested $126.00. ETH/USD is currently consolidating and it seems like a bearish continuation pattern is in place with support at $128.00.
- Ethereum price moved into a bearish zone with a close below the $133.65 and $130.50 supports.
- ETH/USD is trading inside a contracting triangle with resistance at $130.00 on the 30-minute chart.
- The price could accelerate losses once there is a break and close below $126.00.
Ethereum Price Analysis
There was an increase in selling pressure on Ethereum price below the $134.00 and $133.65 supports. ETH/USD even broke the $130.50 and $128.00 support levels to move further into a bearish zone.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair declined further below the $128.00 support level. It traded below the $126.00 support and the 25 simple moving average (30-min). A new weekly low was formed at $125.93 and the pair is currently consolidating losses.
It corrected above the $128.00 level and the 23.6% Fib retracement level of the latest decline from the $137.40 high to $125.93 low. However, the upward move was capped by the previous support at $130.50.
More importantly, the price is trading inside a contracting triangle with resistance at $130.00 on the same chart. If there is an upside break above the $130.50 level, the price could test the $131.60 level and the 50% Fib retracement level of the latest decline from the $137.40 high to $125.93 low.
The next main hurdle for buyers is near the $133.65 level, above which the price could recover above $135.00. On the other hand, the triangle pattern could be a bearish continuation pattern from the $132.00 swing high.
Therefore, if Ethereum price breaks the triangle support and clears the last swing low near $126.00, there may be a sharp drop below the $125.00 level. Clearly, ETH remains in a downtrend unless buyers gain pace above the $130.50 and $133.65 resistance levels. On the downside, the main support below the $125.00 level is near the $120.50 level.
The market data is provided by TradingView, Bitfinex.