Ethereum nosedived from the $370 resistance zone against the US Dollar. ETH price is currently correcting losses from $345, but it is likely to face sellers near $355.
- Ethereum is down over 3% from the $372 high and it even broke the $355 support.
- The price is currently recovering from the $345 low, but it is well below the 100 hourly simple moving average.
- There was a break below a crucial bullish trend line with support near $356 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to face a strong resistance near the $355, $356 and $358 levels in the near term.
Ethereum Price is Facing Many Hurdles
Ethereum remained steady above the $355 resistance level and it even climbed above $365. However, ETH bulls failed to gain strength above the $370 level.
A high was formed near $372 and there was a sharp decline in ether price. There was a break below the $365 and $360 levels. The bears gained control and there was a break below a crucial bullish trend line with support near $356 on the hourly chart of ETH/USD.
The pair even spiked below the $350 support and settled below the 100 hourly simple moving average. A low is formed near the $345 level and ether is currently correcting higher. There was a break above the 23.6% Fib retracement level of the recent decline from the $372 swing high to $345 low.
Ethereum price dives below $355. Source: TradingView.com
The price is currently struggling to surpass the key $355 level (support turned resistance). The next key resistance is near the $356 level and the 100 hourly simple moving average.
The main resistance seems to be forming near the $358 level. It is close to the 50% Fib retracement level of the recent decline from the $372 swing high to $345 low. A successful break above the $355 resistance and then a follow up move above the $358 level is needed for a fresh increase.
More Losses in ETH?
If Ethereum fails to clear the $355 resistance, there are chances of more losses. An initial support on the downside is near the $350 level,
The first key support is near the $345 low, below which the price could slide towards the $335 level. Any further losses may perhaps lead the price towards the $320 support in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly recovering in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting higher and it is above the 40 level.
Major Support Level – $345
Major Resistance Level – $358
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal
