Ethereum price tumbled recently and broke the $125.00 support. ETH/USD is currently correcting higher, but sellers remain in control below $125.00 and $130.00.
- Ethereum price declined heavily and settled below the $125.00 support level.
- ETH/USD is currently following a short term ascending channel with support at $119.00 on the 30-minute chart.
- The price is likely to face sellers near the $122.00 and $125.00 resistance levels.
Ethereum Price Analysis
After a sharp decline, Ethereum price started trading in a range above the $125.00 support. ETH consolidated for a few sessions, but buyers failed to gain strength above the $130.00 resistance, resulting in additional declines.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair broke the $125.00 support area and declined below the $120.00 support. It even settled below the $125.00 support and traded to a new monthly low at $116.09.
Presently, the price is correcting higher and moved above the $118.00 level and the 25 simple moving average (30-min). Buyers pushed the price above the 23.6% Fib retracement level of the recent slide from the $128.06 high to $116.09 low.
However, there are many hurdles for buyers near the $122.00, $123.50 and $125.00 resistance levels. An initial resistance is $122.00 and the 50% Fib retracement level of the recent slide from the $128.06 high to $116.09 low.
A clear break above the $122.00 and $123.50 resistance levels may push the price towards the $125.00 barrier (the previous support area). It seems like the $125.00 resistance is likely to act as a strong sell zone in the near term.
At the outset, there is a short term ascending channel formed with support at $119.00 on the same chart. If there is a downside break below the channel support, the price may resume its decline below the $116.09 low.
Overall, Ethereum price is slowly recovering, but upsides remain capped near $122.00 and $125.00. As long as ETH is trading below the $125.00 and $130.00 resistance, it remains in a bearish trend. The next key support below $116.00 it at $110.00 and $108.00.
The market data is provided by TradingView, Bitfinex.