Ethereum exchange rate (ETH) is moving towards a resistance barrier of $ 120, which coincides with the average value of an asset for 100 hours. Most likely, buyers will not be able to gain above this zone. However, ETH/USD will drop to $ 100 by March 26th.
Key Points
⦁ The bulls made several attempts to overcome the $ 120 barrier but failed to reverse the downward trend.
⦁ ETH/USD will be under pressure in the range below $ 120.
⦁ A bearish trend line with resistance at $ 116 was broken on the hourly chart.
When the ETH/USD fell to $ 97, the value of Ethereum corrected to $ 138, however, the coin began to dump again. On March 18, the bulls broke resistance at $ 115, as a result of which ETH/USD rose to $ 120.49 (Gemini exchange data), but could not hold above the key barrier. The only positive thing is that the Ethereum rate is consolidating in the range above $ 116.
At the moment, the cryptocurrency is trading at 23.6% Fib during the pump from $ 97 to $ 120.49. The upward movement meets strong resistance at around $ 120. If this barrier is broken, the ETH/USD price will reach $ 125. The next barrier is at $ 130.
What Point Will Ethereum Drop To?
The control of the market is in the hands of bears. In this regard, we should not count on a change in trend soon. Buying interest in ETH is low because the coin lost 53% in 12 days. According to many traders, the bottom has not yet been found. The course of the ETH/USD within a declining triangle. The lines will intersect on March 20, so a downward movement should occur on Friday.
The main support barrier is at $ 112, about 50% of the Fibonacci level. Successfully overcoming this barrier will mean a drop in the value of Ethereum to $ 110, then to $ 105 and $ 100. If we draw an analogy with September 2019, then the price of ETH may drop to about $ 80 after the correction is completed.
Technical indicators:
⦁ MACD indicator for 4 hours – in the bullish trend zone.
⦁ The RSI index for 4 hours is above 40 (in the neutral area).
⦁ The main support level is $ 112.
⦁ The main resistance level is $ 120.
⦁ Nearest pivot points: $ 94 and $ 140.
Source: en.bit.news
