Ethereum (ETH) Forming Bearish Pattern, $186 Hold Key

technical analysis ethereum

Ethereum price is forming a bearish breakdown pattern versus the US Dollar, while bitcoin is trading below $9,400. ETH price could decline heavily if it breaks $186.

Ethereum Price Analysis

Recently, there was a decent rise in Ethereum above the $188 and $190 resistance levels against the US Dollar. Moreover, ETH price traded above the $192 resistance area and settled above the 100 hourly simple moving average.

However, the price faced a strong resistance near the $195 level and a high was formed near $195. There was a downward move from the $195 and the price traded below the $190 level.

At the outset, Ethereum is holding the $188 and $186 support levels. On the upside, an immediate resistance is near the $192 level. Besides, the 50% Fib retracement level of the recent decline from the $195 high to $188 low is near the $192 zone.

Therefore, an upside break above the $192 level might push the price towards the $195 resistance. An intermediate resistance is near the 76.4% Fib retracement level of the recent decline from the $195 high to $188 low.

On the downside, there are many supports near the $188 and $186 levels. More importantly, this week’s key bullish trend line is intact with support near $188 on the hourly chart of ETH/USD.

It seems like there is a head and shoulders pattern forming with support near the $188 and $186 levels. Thus, if there is a bearish break below the $186 support, the price could start a fresh decline in the near term.

The next key support is near the $185 level. Any further losses are likely to push the price back towards the main $178 support area.

Ethereum Price

Looking at the , Ethereum price seems to be preparing for the next move, with key supports near $186 and the 100 hourly simple moving average. If the highlighted head and shoulders pattern plays well, the price could decline towards the $180 and $178 support levels in the short term.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is now moving in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently declining and it is well below the 50 level.

Major Support Level – $186

Major Resistance Level – $192

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