Ether’s price nosedived below key supports against the US dollar and bitcoin. ETH/USD is likely to decline further and could accelerate losses below the $100.00 support.
Ether’s price broke the key $106.00 support area to move into a bearish zone against the US dollar.
ETH/USD traded below a major bullish trendline, with support at $107.00 on the 6-hour chart.
ETH/BTC declined heavily and broke the 0.0305BTC support level.
Technically, the 6-hour chart indicators are moving lower in bearish territory.
Ether (ETH) Price Analysis
Yesterday, we saw how ETH/USD sellers were waiting on the sidelines for a break below the $106.00 support level. The pair did break the $106.00 support, resulting in a sharp drop toward the $100.00-101.00 support area.
Similarly, there was a significant weakness in ETH/BTC below the 0.0310BTC and 0.0305BTC support levels. The pair is currently consolidating losses near 0.0300BTC, and it could decline further in the near term.
Let’s start with the 6-hour chart of ETH/USD to understand the recent decline from the $111.47 swing high. After a steady recovery from the $101.05 level, there was a strong selling interest near the $110.00-110.00 resistance zone.
The pair consolidated in a range below the $110.00 resistance for a few days, and finally there was a downside break below the $106.00 pivot. Ether also traded below a major bullish trendline, with support at $107.00 on the same chart.
The recent downside break has opened the doors for a test of the last swing low at $101.05, below which there is a risk of a sharp decline below the $100.00 handle. The next key supports are near the $98.00 and $95.00 levels.
To the topside, there are many resistances formed, such as $105.00, $106.00, $107.00, and a bearish trendline. The 2-hour chart of ETH/USD suggests that the pair is currently consolidating losses above $102.00, with a bearish angle.
Should Ether correct higher, it could face a strong selling interest near the $106.00 level and the 50 percent Fibonacci retracement level of the recent drop from the $111.47 high to $101.40 low.
Important Resistance Levels
$104.50 and $106.00
Important Support Levels
$101.00 and $100.00
The RSI is now well below the 30 level.
The MACD is gaining strength in the bearish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging.
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