Ethereum Price Analysis: ETH/USD may retreat to $134.00 before another leg higher

ETH/USD retreats after a strong upside move.
The support may be found as low as $134.00

Tanya Abrosimova Independent Analyst

ETH/USD jumped as high as $152.50 on Friday before retreating to $148.00. The second-largest digital asset has gained over 8% since the beginning of the day and nearly 23% on a day-to-day basis, moving in sync with the market. The bullish sentiments helped the coin to settle above the upper line of 1-hour Bollinger Band, however, the further upside may be limited at this stage, as the asset is deeply overbought at least on the intraday charts.

One-hour RSI is ready to reverse to the South. which means that the downside correction may be extended if the price fails to stay above $146.00. The next support comes at $134.00. This area has been limiting the sell-off since March 19. Once it is out of the way, the downside momentum is likely to gain traction with the next focus on a $125.50 support area reinforced by SMA50 and SMA200 on a 1-hour chart.

On the upside, the critical psychological barrier is located at $150.00. If it is sustainably broken, the upside may gain traction and bring the price towards the intraday high of $152.50. This area may slow down the recovery towards the critical long-term resistance created by SMA200 daily on approach to $177.50.