Ethereum extended its decline below the key $365 support against the US Dollar. ETH price is correcting higher and it must surpass $380 for to avoid another bearish wave.
- Ethereum started a decent upward move after it tagged the $360 level.
- The price is now trading nicely above the $370 level and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could is still facing a strong resistance near the $380 level.
Ethereum Price is Facing Hurdles
Ethereum extended its decline below the $370 level. ETH price even broke the $365 support level and tested the $360 level. It found support near $360 and recently started a fresh increase.
There was a break above the $365 and $368 resistance levels. More importantly, there was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD. Ether price is now trading nicely above the $370 level and the 100 hourly simple moving average.
It is still facing a strong resistance near the $380 level. A high is formed near $380 and the price is currently correcting lower. There was a break below the $375 level, plus the 23.6% Fib retracement level of the upward move from the $360 swing low to $380 high.
Source: ETHUSD on TradingView.com
Ether is now testing the $372 level and the 100 hourly simple moving average. A crucial support is forming near the $370 level and a connecting bullish trend line. It is close to the 50% Fib retracement level of the upward move from the $360 swing low to $380 high.
On the upside, the bulls are facing a strong resistance near $380. A clear break above the $380 resistance is needed to start a steady increase in the coming sessions.
Fresh Decline in ETH?
If Ethereum fails to clear the $380 resistance levels, it might continue to move down. An immediate support is near the $372 and the 100 hourly SMA.
The main support is near the $370 level. A clear break below the $370 support level could spark a sharp decline. The next major support is near $360, below which it could test $350 in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $370
Major Resistance Level – $380
