Ethereum Breaking This Crucial Support Could Spark a Sharp Decline

Ethereum is struggling to gain bullish momentum above the $145 resistance against the US Dollar, similar to bitcoin. ETH price must stay above the $140 support area to remain in an uptrend. ETH price is currently facing a strong resistance near $145 and $150 against the US Dollar. There is a crucial support forming near the $140 level and the 100 simple moving average (4-hours). There is a major contracting triangle forming with resistance near $145 on the 4-hours chart of ETH/USD (data feed via Kraken). The pair could either rally sharply above $145 or it might start a solid decline below $140. Ethereum Price Trading Near Key Juncture This past week, Ethereum climbed higher nicely above the $130 and $135 resistance levels against the US Dollar. ETH price even spiked above the $145 resistance and settled above the 100 simple moving average (4-hours). It tested the $150 resistance area, where the bears emerged. Recently, there was a downside correction below the $145 level. The price traded below the 23.6% Fib retracement level of the upward move from the $129 swing low to $150 swing high. However, Ethereum remained well bid above the $140 support area (the previous resistance area). The 50% Fib retracement level of the upward move from the $129 swing low to $150 swing high is also acting as a strong support. The 100 simple moving average (4-hours) is also near the $140 support area to protect a downside break. More importantly, there is a major contracting triangle forming with resistance near $145 on the 4-hours chart of ETH/USD. Ethereum Price If there is a downside break below the $140 support area and the 100 SMA, the bears are likely to take control. The next key support is near the $133 level, below which the bears are likely to aim a test of the $124 support. Fresh Bullish Wave? If Ethereum price remains stable above the $140 support and the 100 simple moving average (4-hours), it could rise further. The first key resistance is near the $145 level, followed by $150. A successful close above the $150 resistance is likely to spark a strong rally towards the $160 and $164 levels in the near term. Technical Indicators 4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone. 4 hours RSI – The RSI for ETH/USD is currently correcting lower from the 65 level. Major Support Level – $140 Major Resistance Level – $150 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.

from NewsBTC https://www.newsbtc.com/2020/04/05/ethereum-below-crucial-support-could-spark-decline/

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