- Ether price started a downside correction the new 2020 high at $172 against the US Dollar.
- The price is currently trading below $165 and it could extend its decline.
- There is a major declining channel forming with resistance near $165 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could test the key $155 support area before it starts a fresh increase in the near term.
Ethereum Starts Downside Correction
Yesterday, we saw a strong rise in Ethereum above the $160 resistance and bitcoin above $8,500 against the US Dollar. ETH price traded to a new 2020 high near $172 before it faced a strong selling interest.
Later, there was a downside correction and the price declined below the $165 support. Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the $143 swing low to $172 high.
The price even broke the $162 support and tested the $160 region. An initial support on the downside is near the $158 level. It coincides with the 50% Fib retracement level of the upward move from the $143 swing low to $172 high.
More importantly, there is a major declining channel forming with resistance near $165 on the hourly chart of ETH/USD. Therefore, there are chances that Ethereum might follow the declining channel and slide towards the $158 and $155 support levels.
The main support is now near $155 and the 100 hourly simple moving average. Besides, the 61.8% Fib retracement level of the upward move from the $143 swing low to $172 high is near $155.
Fresh Increase In ETH?
As mentioned, the $155 area is a crucial support. As long as ETH price is above the $155 level, the bulls are likely to remain in action. On the upside, an initial resistance is near the $164 level.
The main resistance is near the $165 zone and the channel upper trend line. A clear break above the channel resistance is likely to set the pace for more gains in the coming sessions. The next hurdles are near $170-$172, above which Ethereum is likely to climb towards the $180 zone.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently below the 50 level, with a few negative signs.
Major Support Level – $155
Major Resistance Level – $165
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