Declining Channel For Ethereum Forms Resistance Near $135

The Declining channel for Ethereum is forming a flag pattern and a resistance near the $135 on the hourly charts as we are reading in the following Ethereum news below.

Ethereum is up by more than 5% and surpassed the $130 resistance area against the US dollar but the main area of resistance is still at $135 and is still facing a major issue for the ETH bulls. The Ethereum price gained traction but there is a short-term declining channel for Ethereum close to the $135 on the charts. The pair, however, could increase above this barrier and it will restart the downward move.

After reaching the $125 support area, the price of Ethereum started an upward move against the dollar while the price was able to clear the $130 resistance area to move into the positive zone. The ETH bulls were able to push the price above the $132 level and the 100 hourly simple moving average. The ETH price increased by 5 percent and is reaching a strong hurdle close to the $135 area which was the previous support zone. Ethereum had a few attempts to go over the $135 barrier but failed and is now trading close to the 23.6% fib retracement level from the recent rise of the $124 and $135.

There is another short-term declining channel forming or a flag pattern forming with a $135 resistance on the hourly charts of ETH/USD. However, if the bulls are able to clear the $135 resistance with a slight chance of a steady increase towards the $140 and $145 resistance levels so any more gains could start a nice increase uptrend and the price is expected to retest the $155 resistance zone. If Ethereum still has a hard time close to the $135 resistance, it could mean that it will drop again. The initial support is close to the 100 hourly SMA channel support.

The clear break below the $132 level could lead the price to the $130 support while the 50% fib retracement level from the previous rise from the $124 low to the $135 high which is also close to the $130 level. Further losses will speed up the decline and the price could test the $124 low. The hourly MACD for the ethereum price is losing momentum in the bullish zone while the RSI is correcting lower and is approaching the 50 levels.