Ethereum (ETH) price struggled once again to gain strength above the $176 resistance against the US Dollar.
The price declined sharply and broke the $172 and $170 support levels.
There was a break below a major bullish trend line with support at $173 on the hourly chart of ETH/USD .
The pair could bounce back above $172 as long as it is trading above the $166 support area.
Ethereum price failed to break important resistances versus the US Dollar and bitcoin.
ETH declined sharply, but the bulls might protected the key $166 and $165 support levels.
Ethereum Price Analysis
Yesterday, we saw a fresh increase in Ethereum price above the $172 resistance against the US Dollar. The ETH/USD pair even settled above the $172 level and the 100 hourly simple moving average. There was a fresh rally in bitcoin price above $5,500, which pushed ETH price above the $175 level. However, the bulls failed to gain strength above the key $176 and $177 resistance levels. A swing high was formed near $177 and later the price started a sharp decline.
It broke the $174, $172 and $170 support levels to move back in a bearish zone. There was also a close below the $172 pivot level and the 100 hourly SMA.
The price traded close to the $166 support level and a swing low was formed near $167. At the outset, the price is consolidating losses near $167 and it is testing the 23.6% Fib retracement level of the recent slide from the $177 swing high to $167 swing low. It seems like the price might correct in the short term towards $170 or $172.
Having said that, a close above the $172 level and the 100 hourly SMA is must for a decent upward move. The 50% Fib retracement level of the recent slide from the $177 swing high to $167 swing low is also near $172.
If there is a close above $172, the price may revisit the $176 and $177 resistances. If not, the price might test the $166 or $165 support level in the near term.
Chart courtesy : Tradingview.com
Looking at the chart, Ethereum price clearly trimmed most its gains and broke the key $172 and $170 supports. If sellers remain in action, there are chances of a downside extension below the $165 support. As long as the price is above $165, the bulls might attempt to push the price above $172.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently heavily in the bearish zone, with negative signs.
Hourly RSI – The RSI for ETH/USD declined heavily below 50 and it is currently near the 27 level.
Major Support Level – $166
Major Resistance Level – $172
Source : Ethereum Price Analysis