Ethereum failed to continue high above $390 against the US Dollar. ETH price is currently trading above a crucial support at $350, below which it could turn negative.
- Ethereum declined below the $375 support after it failed near the $390 level.
- The price is now trading below the 100 hourly simple moving average, but it is well above $350.
- There is a crucial bullish trend line forming with support near $358 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $350 support level to start a fresh increase in the near term.
Ethereum Price Testing Key Support
There was a decent upward move in Ethereum above the $350 and $370 resistance levels. ETH price even broke the $375 resistance zone and the 100 hourly simple moving average.
However, the price failed to test the $400 barrier and recently started a fresh decline from the $390 high. It broke the $375 and $370 support levels to move into a short-term bearish zone. The decline gained pace below the $365 level and the 100 hourly SMA.
The price is now trading below the 100 hourly simple moving average, but it is well above the key $350 support. A low is formed near $353 and ether price is attempting a fresh increase.
Ethereum price trades below $370. Source: TradingView.com
It broke the 23.6% Fib retracement level of the recent decline from the $390 high to $353 low. There is also a crucial bullish trend line forming with support near $358 on the hourly chart of ETH/USD. If ether stays above the trend line support, it could rise above the $370 resistance.
The first major resistance is near the $372 level or the 50% Fib retracement level of the recent decline from the $390 high to $353 low. The next major resistance is near the $375 level, above which the price is likely to rise steadily towards the $400 resistance zone.
Bearish Break in ETH?
If Ethereum fails to clear the $370 and $375 resistance levels, there is a risk of a downside break. The trend line support holds the key, followed by the $350 level.
A successful break and close below the $350 support level is likely to put a lot of pressure on the bulls, and the price might decline towards the $325 support.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently struggling below the 50 level.
Major Support Level – $350
Major Resistance Level – $370
This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.