Analysis

Ethereum Price Action Suggests A Firm Case For Drop Towards $310

Ethereum topped near the $ 370 resistance and declined sharply against the US Dollar. ETH price is showing bearish signs below $ 355 and it might continue to move down.

  • ETH price started a fresh decline after it failed to clear $ 370-$ 375 against the US Dollar.
  • The price is now trading below the $ 355 support and the 100 simple moving average (4-hours).
  • There was a break below a major ascending channel with support near $ 355 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher, but upsides might be capped near $ 355 or the 100 SMA (H4).

Ethereum Price Breaks Key Support

This past week, Ethereum surpassed the $ 355 and $ 360 resistance level against the US Dollar. However, ETH price failed to gain bullish momentum above the $ 370 and $ 375 resistance levels.

A high was formed near $ 372 and ether price started a sharp decline. It broke the $ 355 support level and the 100 simple moving average (4-hours) to move into a negative zone. There was also a break below a major ascending channel with support near $ 355 on the 4-hours chart of ETH/USD.

The price tested the $ 335 support zone, where the bulls took a strong stand. Recently, there was an upside correction above the $ 340 level. Ether traded above the 23.6% Fib retracement level of the downward move from the $ 372 high to $ 335 swing low.

Ethereum Price

Ethereum price settles below $ 355. Source: TradingView.com

On the upside, there are many important hurdles for the bulls starting with $ 353. It is close to the 50% Fib retracement level of the downward move from the $ 372 high to $ 335 swing low.

The main resistance is near the $ 355 level and the 100 simple moving average (4-hours), above which the price might start a steady upward move towards $ 370 or even $ 380 in the coming days.

More Downsides in Ether (ETH)?

If Ethereum fails to clear the $ 355 resistance zone, it might start a fresh decline. An initial support on the downside is near the $ 340 level.

The first major support is near the $ 335 level. If ether fails to stay above the $ 334 support, there is a risk of a sharp decline towards the next major support at $ 315 or $ 310. Any further losses could the price towards the $ 300 support.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly moving into the bullish zone.

4 hours RSI – The RSI for ETH/USD is now well below the 50 level.

Major Support Level – $ 335

Major Resistance Level – $ 355

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