Ethereum price is trading below the key $142.00 resistance level, with a bearish angle. ETH/USD is currently at a risk of a sharp drop unless buyers clear the $142.00 and $144.00 resistances.
- Ethereum price is struggling to clear the $142.00 resistance area.
- ETH seems to be following a crucial declining channel with resistance at $142.00 on the 30-minute chart.
- There could be a nasty drop below $140.00 and $138.20 if there is no break above $142.00.
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Ethereum Price Analysis
After trading as high as $147.50, Ethereum price started a slow and steady decline. ETH/USD followed a bearish structure and formed a few lower highs such as $144.88 and $142.11 before moving into a bearish zone.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the last swing high was formed at $144.88 before the price dropped below the $142.00 and $140.00 support levels. It traded as low as $138.25 and later started a short term upside correction.
The price climbed above the $141.50 level and the 25 simple moving average (30-min). There was also a break above the 50% Fib retracement level of the last decline from the $144.88 high to $138.26 low.
However, sellers protected more upsides near the $142.30 level and the 61.8% Fib retracement level of the last decline from the $144.88 high to $138.26 low. Later, there was another attempt to clear the $142.00 resistance, but buyers failed to gain traction and a swing high was formed at $142.11.
At the moment, it seems like the price is following a crucial declining channel with resistance at $142.00 on the same chart. Therefore, a convincing break above the channel resistance and follow through above the $142.11 swing high is needed for a fresh upward move.
If buyers fail to gain bullish momentum above the $142.00 resistance, there could be a nasty drop below the $140.00 and $138.20 support levels in the near term.
Overall, Ethereum price is trading near a crucial resistance at $142.00. If ETH fails to climb higher, sellers are likely to take control and the price may drop towards the $136.00 support.
The market data is provided by TradingView, Bitfinex.
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