Technically, the 2-hour chart indicators are slowly moving into the bearish territory.
Ether Price Analysis
Yesterday, we discussed the importance of the $120.00 support area for ETH/USD. The pair remained well-bid and moved above the $125.00 and $130.00 level before sellers appeared near the $139.00-140.00 zone.
ETH/BTC consolidated above the 0.0320BTC support and moved a few points higher. The pair needs to settle above the 0.0350BTC resistance for an upward move above the 0.0380BTC and 0.0400BTC levels.
Looking at the 2-hour chart of ETH/USD, the pair dipped heavily after trading to a new monthly high at $161.35 and moved below the $150.00 and $140.00 support levels. However, the decline was protected by the $120.00-124.00 support zone.
More importantly, there is a major bullish trendline formed with support at $124.00 on the same chart. A strong confluence buy zone is in place near the trend line, the $120.00 support, and the 50 Fibonacci retracement level of the upward move from the $82.12 low to $161.35 high.
Should there be a close below the $120.00 support, the price may decline heavily in the near term. Moving down to the 30-minute chart of ETH/USD, the pair recently retreated from the $139.00 zone.
Ether seems to be preparing for the next break, with a crucial breakout pattern and support at $128.00. To the topside, a break above the $132.00 resistance will most likely open the doors for an upside break above the $135.00 resistance.
The current price action is positive as long as Ether’s price is above $124.00 and $120.00. In the short term, there could be consolidation moves before the next break either above $135.00 or below $120.00.