ETH Is In A Downtrend Below $130: Will This Situation Last?

The Ethereum news today show that ETH is in a downtrend and currently trading in a bearish zone below the $135 level against the US dollar. There are plenty of hurdles on the upside, starting with $135 and up to $144.

In the past few days, Ethereum made a couple of attempts to gain strength above the $140 resistance level but did not achieve that. The ETH price failed to settle above $140 and as we can see now, did not even find support above $130. Currently, it is trading at $129 after a fresh decline brought it from the $136 and $135 levels down above.

There was a break below the 23.6% Fib retracement level of the upward move from the $108 swing low to the $144 swing high. The Ethereum price even broke the $130 support area and moved into a bearish zone.

ETH is in a downtrend now and is trading near the 50% Fib retracement level of the upward move from the $108 swing low to the $144 swing high. On the upside, we can see a major bearish trend line forming with resistance near $135 on the 4-hour chart of ETH/USD. If the price fails to stay above the $125 support area, it will likely extend its decline.

As we can see, the next key support for ETH in the cryptocurrency news today is near the $120 level, where the bulls are situated and likely to stand. Any further losses may trigger ETH to visit these levels – and stronger declines than this may even open up the gates for a larger decline towards $105 and $100 in the coming days.

On the optimistic side, analysts believe that ETH is in a downtrend but if it manages to get away with a surge today, it could enter the lower $130s soon and make an attempt for $140 after that. The resistance is positioned at $144 and is a break is needed for a strong rally towards the $155 and $160 levels.

Currently, the technical indicators are as following:

• 4 hours MACD – The MACD for ETH/USD is starting to lose momentum in the bearish zone now.
• 4 hours RSI – The RSI for ETH/USD is currently well below the 50 level and ready for a new break.
• Major Support Level – currently at $120
• Major Resistance Level – currently at $144