Ethereum price started a major decline against the US Dollar and bitcoin. ETH/USD is following a downtrend and it could continue to move down towards the $120 and $118 levels.

Recently, we saw a downside extension below the $130 support in ETH price against the US Dollar. The ETH/USD pair gained bearish momentum and broke the $126 and $125 support levels. It even traded below the $124 level and settled well below the 100 hourly simple moving average. A new monthly low was formed near $122 and the price is currently consolidating losses. It recovered above the $124 level and the 23.6% Fib retracement level of the recent drop from the $135 swing high to $122 swing low.

However, the previous support at $127 is acting as a solid resistance. Above $127, the $128 and $129 levels are waiting to prevent gains. There is also a crucial bearish trend line in place with resistance at $130 on the hourly chart of ETH/USD. Below the trend line, the 50% Fib retracement level of the recent drop from the $135 swing high to $122 swing low is near $129. Finally, the 100 hourly simple moving average is positioned near the $131 level.

Therefore, there are many resistances on the upside, starting with $127 and ending near $131. If the price corrects higher, it is likely to find a strong selling interest near $127 and $128. Once the current consolidation/correction pattern is complete, the price may resume its decline below $124. The next key support is positioned near the $120 level. If sellers remain in action, the price could even test the $118 level in the near term.

Looking at the chart, ETH price is trading heavily in the bearish zone below the $131 resistance. There could be short-term corrective moves, but upsides remain capped below $130 and $131. On the downside, buyers are likely to take a stand near the $120 and $118 levels in the coming sessions.

Hourly MACD The MACD for ETH/USD is about to move back in the bearish zone.

Hourly RSI The RSI for ETH/USD is slowly recovering, but it is still well below the 50 and 45 levels.

Major Support Level $120

Major Resistance Level $130

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Ethereum Price Analysis: ETH Remains Sell Near $128, Target ...