Ethereum Price Weekly Analysis: ETH Could Suffer Losses Before Fresh Increase
- ETH price traded below the key $139-140 resistance area for many sessions against the US Dollar.
- The price is trading with a bearish bias and there could be a few downward spikes towards $125.
- There is a key contracting triangle in place with resistance at $136 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could trade higher, but as long as it is below $140, it is likely to dip towards $125 or $124.
Ethereum price is struggling to gain bullish momentum versus the US Dollar and Bitcoin. ETH/USD could extend losses if it continues to trade below the $139-140 resistance area.
Ethereum Price Analysis
This past week, there were many attempts by ETH price to break the $139-140 resistance against the US Dollar. The ETH/USD pair failed to clear the $140 resistance and started trading in a range. However, most moves were bearish and the price declined below the $134 and $130 support levels. A new weekly low was formed at $127 and later the price recovered above the $130 level. There was even a break above the $135 level and the 100 simple moving average (4-hours).
Buyers pushed the price above the 23.6% Fib retracement level of the last decline from the $166 high to $127 low. However, the upside failed near the $137-138 zone. Later, the price dipped below the $135 level and the 100 simple moving average (4-hours). At the moment, there is a key contracting triangle in place with resistance at $136 on the 4-hours chart of ETH/USD. The pair could spike above the triangle resistance and revisit the $140 resistance area. Above $140, the next key resistance is near the $146 level. It represents the 50% Fib retracement level of the last decline from the $166 high to $127 low.
Having said that, a break above the $139 and $140 resistance levels won’t be easy. If there is a downside break, the price could decline below the last swing low at $127. The main support below $127 is near the $125 level, which acted as a solid resistance earlier. Below $125, the price could slide towards the $114 swing low in the near term.
The above chart indicates that ETH price is consolidating in a broad range below the $140 resistance. In the short term, there could be swing moves, but it seems like the price could revisit the $125 support level.
4 hours MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
4 hours RSI – The RSI for ETH/USD is currently moving higher towards the 50 level, with a positive angle.
Major Support Level – $125
Major Resistance Level – $139
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