Ethereum (ETH) Price Approaching Significant Support

• ETH price started a downside correction after testing the $188 level against the US Dollar.
• The price declined below the $174 and $165 support levels to move into a short term bearish zone.
• There is a crucial bullish trend line forming with support at $155 on the 4-hours chart of ETH/USD (data feed via Kraken).
• The pair could decline further towards the $155 support before it could bounce back.

Ethereum price started a major downside correction versus the US Dollar and bitcoin. ETH is currently under pressure and it seems like the price could test the $155 support before higher.

Ethereum Price Weekly Analysis

This past week, Ethereum price traded towards the $185 and $188 resistance levels against the US Dollar. The ETH/USD pair faced a strong selling interest near the $185 resistance zone, resulting in a bearish reaction. The price started a downside correction and broke the key $174 support area. There was a break below the $170 level and the 50% Fib retracement level of the last wave from the $154 swing low to $188 swing high.

It opened the doors for more losses and the price declined below the $165 support. It tested the $162 support area and the 100 simple moving average (4-hours). Besides, the 76.4% Fib retracement level of the last wave from the $154 swing low to $188 swing high. On the downside, there is a crucial bullish trend line formed with support at $155 on the 4-hours chart of ETH/USD. The pair is likely to find a strong buying interest near the $155 and $156 support levels. It seems like there could be a final downside push towards the $155 level before the price could bounce back sharply.

On the upside, an initial resistance is near the $166 level, above which the price may revisit the $170 level. However, the main resistance is at $175, above which the price is likely to resume its upward move above $180 in the coming days. On the other hand, if the price fails to hold the $155 support area, there could be more losses in the near term.

The above chart indicates that Ethereum is approaching a few important supports levels near the $155 and $156 levels. As long as the price is trading above the $155 support, there are chances of a fresh increase above the $170 level. Below $155, the next immediate support is at $152, below which the price may test $144.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is about to move back in the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently positioned well below the 45 level.

Major Support Level – $155

Major Resistance Level – $170