Ethereum failed to clear the $445 resistance and declined below $420 against the US Dollar. ETH price is now approaching a major support zone near the $400 handle.
- Ethereum is down over 5% and it broke the $425 and $420 support levels.
- The price even settled below the $420 level and the 100 hourly simple moving average.
- There is a new bearish trend line forming with resistance near $420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to find a strong buying interest near the $400 and $398 support levels.
Ethereum Price Corrects 5%
After another failed attempt to gain strength above $445, Ethereum started a downside correction against the US Dollar. ETH is down over 5% and it broke the $425 and $420 support levels.
The recent decline was such that the price even settled below the $420 level and the 100 hourly simple moving average. It traded as low as $405 and it is currently recovering higher. An initial resistance is near the $415 level.
The 23.6% Fib retracement level of the recent decline from the $447 swing high to $405 low is also near the $415 level to act as a hurdle. Moreover, there is a new bearish trend line forming with resistance near $420 on the hourly chart of ETH/USD.
Ethereum price trades below $420. Source: TradingView.com
The main resistance is now forming near the $425 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $447 swing high to $405 low is also near the $425 level.
A successful break above the $415, $420, and $425 resistance levels is needed to start a fresh increase. In the mentioned case, the bulls are likely to push the price towards the $445 and $450 resistance levels.
Crucial Uptrend Support for ETH
If Ethereum fails to recover above $420 or $425, it could continue to move down. The first support is near the recent low at $405.
The main support is near the $400 level (the last key breakout zone) or $398. If there are more losses below $395, the price could start a major downside correction towards $380 or even $365.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level.
Major Support Level – $400
Major Resistance Level – $425
