- Ethereum price is likely to lose ground towards $100 if the symmetrical triangle pattern support is broken.
- The zone at $100 – $110 is a possible buy zone which could accord ETH/USD with momentum towards $140 and $150.
Ethereum price currently displays just enough power to defend the support at $120. All the attempts made towards recovery since the dip to $90 have bowed to the selling activity under $150. Moreover, investors are preferring to watch from a distance. At the time of writing, ETH/USD is doddering at $120 after a 2.51% loss on the day.
ETH/USD is also trading within the confines of a symmetrical triangle pattern whose breakout is around the corner. In the short term, bearish momentum is very likely especially if the bulls fail to hold the price above $120 and the triangle support is broken. In this case, more selling could send ETH/USD towards $100 in order to create fresh demand.
On the upside, if the bulls ignore the fear and enter the market, we could see growth above $130 however, gains are unlikely to break the resistance at $140 let alone the seller congestion at $150. The gap between the 50 SMA on the 4-hour chart and the 100 SMA shows that sellers are largely in control or could eventually gain traction against the bulls.
ETH/USD price chart
Meanwhile, the Relative Strength Index (RSI) sends signs of stability, for now. Traders should be keen on the direction the indicator takes in the current and next sessions because a return the oversold region is likely to increase bearish activities. However, growth above 40 and 50 levels would encourage more bulls to enter the market.
Ethereum Key Levels
Spot rate: $120
Relative change: 3.91
Percentage change: -3.44%
Trend: Short term bearish bias
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige