Ethereum Price Analysis: ETH Forming Bearish Continuation Pattern
- ETH price stayed below the $ 107 resistance level, with bearish signs against the US Dollar.
- There is a major bearish pennant formed with resistance near $ 106 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate losses below the $ 100 level if there is a bearish break below $ 103.
Ethereum price is forming a bearish continuation pattern against the US Dollar and bitcoin. ETH/USD remains at a risk of more losses as long as it is trading below $ 107.
Ethereum Price Analysis
Yesterday, we saw a tiny recovery above the $ 104 level in ETH price against the US Dollar. The ETH/USD pair even traded above the 23.6% Fib retracement level of the last decline from the $ 114 high to $ 101 swing low. However, the price failed to break the $ 107 resistance level. As a result, there was a fresh drop below the $ 106 level. The price moved below the 50% Fib retracement level of the recent wave from the $ 101 swing low to $ 107 high. However, the decline was protected by the $ 103 level.
More importantly, there is a major bearish pennant formed with resistance near $ 106 on the hourly chart of ETH/USD. The triangle resistance could play a major role near $ 106-107. If there is a break above $ 107, the price may trade towards the $ 110 and $ 112 levels. On the other hand, if there is a downside break below $ 103, the price is likely to accelerate losses in the near term. It seems like the 61.8% Fib retracement level of the recent wave from the $ 101 swing low to $ 107 high is currently protecting losses. However, it may soon give up if there is no break above $ 106 and $ 107.
Looking at the chart, ETH price is clearly under a lot of pressure below $ 107. If there is an increase in selling, the price is likely to decline below $ 103 and $ 101.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move back in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 40 level, with a minor bullish angle.
Major Support Level – $ 101
Major Resistance Level – $ 107
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