Ethereum is down over 15% from the $445 high against the US Dollar. ETH price could continue to move down, but the $360 support zone might act as a strong barrier for the bears.
- ETH price is trading in a bearish zone below the $400 and $410 resistance levels against the US Dollar.
- There is a strong support waiting on the downside near the $368 and $360 levels.
- There is a key connecting bearish trend line forming with resistance near $400 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower towards $360 before the bulls attempt a fresh increase.
Ethereum Price Turns Red
This past week, Ethereum failed to extend gains and started a strong decline below $420 against the US Dollar. ETH price broke the $400 support zone and settled well below the 100 simple moving average (4-hours).
The decline was such that ether even spiked below the $385 support level. A low is formed near $379 and the price is currently correcting higher. It moved above the $385 level, but it is facing resistance near the $395 level.
It seems like the 23.6% Fib retracement level of the downward move from the $447 high to $379 low is acting as a resistance. The first major hurdle is near the $400 level and the 100 simple moving average (4-hours). There is also a key connecting bearish trend line forming with resistance near $400 on the 4-hours chart of ETH/USD.
Ethereum price trades below $400. Source: TradingView.com
If ether price breaks the $395 and $400 resistance levels, it could start a real recovery wave. The next major resistance is near the $410 level or the 50% Fib retracement level of the downward move from the $447 high to $379 low.
To move into a positive zone and start a fresh upward move, Ethereum must clear the $410 and $415 resistance levels in the coming days.
Downsides Supported in Ether (ETH)?
If Ethereum fails to clear the $400 resistance zone, it could continue to move down. An initial support is near the $380 level, but the first major support is near the $368 level.
The next major support is near the $360 level (the last breakout zone), below which the bears are likely to target a larger downward move in the near term.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
4 hours RSI – The RSI for ETH/USD is still below the 40 level.
Major Support Level – $360
Major Resistance Level – $400
