ETH price started a sharp downside correction after trading as high as $198 against the US Dollar.

The price is currently holding an important support area near the $180 level.

There was a break below a major bullish trend line with support near $188 on the 4-hours chart of ETH/USD (data feed via Kraken).

The pair could extend its decline towards the $175 support area before a fresh increase.

Ethereum price is struggling to retain its bullish bias against the US Dollar and bitcoin. ETH is likely to bounce back as long as it is above $175 and $180.

Ethereum Price Weekly Analysis

This past week, ETH started a strong rise above the $175 resistance against the US Dollar. Moreover, the pair broke the key $185 resistance area and settled above the 100 simple moving average (4-hours). It opened the doors for more gains above the $190 resistance. Finally, the price traded close to the $200 level and a new monthly high was formed near the $198 level.

Later, there was a sharp decline in Ethereum and the price traded below the $185 support area. Additionally, there was a break below the 50% Fib retracement level of the last major wave from the $167 low to $198 high. More importantly, there was a break below a major bullish trend line with support near $188 on the 4-hours chart of ETH/USD. The price even spiked below the $182 support and the 100 SMA.

At the moment, the price is consolidating near the $180 support area and the 100 SMA. Moreover, the 61.8% Fib retracement level of the last major wave from the $167 low to $198 high is also protecting losses. If there is a downside break below the $180 support, there are chances of an extended decline towards the $175 support area in the near term.

On the upside, an immediate resistance is near the $185 area. If there is a successful break above the $185 resistance, there are chances of a fresh increase. The next resistance is near the $190 level, above which the price could continue to rise towards the main $200 resistance area.

The above chart indicates that Ethereum price is struggling to remain in an uptrend above the $180 support area. In the short term, there could be a downside spike towards the $175 support area. However, as long as the price is above the $175 support, it could bounce back.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is likely to move back into the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently below the 50 level, with a minor bearish angle.

Major Support Level – $175

Major Resistance Level – $185