Key Highlights

• ETH price declined sharply and broke the important $197 support against the US Dollar.
• There was a break below a crucial contracting triangle with support at $199 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair traded as low as $190 and it is currently correcting higher in the near term.

Ethereum price declined sharply against the US Dollar and bitcoin. ETH/USD moved into a bearish zone below the $200 and $197 support levels.

Ethereum Price Analysis

After trading in a range for a few days, ETH price started a downside move against the US Dollar. The ETH/USD pair declined sharply after it failed to move past the $203 and $204 resistance levels. The price broke the $201, $200 and $197 support levels to move into a bearish zone. There was even a close below the $197 support and the 100 hourly simple moving average.

During the decline, there was a break below a crucial contracting triangle with support at $199 on the hourly chart of ETH/USD. The pair traded close to the $190 support and it is currently correcting higher. It moved above the 23.6% Fib retracement level of the recent decline from the $203 high to $190 low. On the upside, there are many resistances near the $197 level, which acted as a support earlier. It also represents the 50% Fib retracement level of the recent decline from the $203 high to $190 low. Therefore, if the pair continues to correct higher, it is likely to face a lot of offers near the $197 level. Above $197, the next resistance is near $200 and the 100 hourly SMA.

Looking at the chart, ETH price is under a lot of pressure below the $197 level. If sellers remain in action, there are high chances of more declines below the recent $190 low.

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI – The RSI is recovering towards the 40 level.

Major Support Level – $190

Major Resistance Level – $197