Ethereum declined below the $1,350 support against the US Dollar. ETH could start a steady increase if there is a clear above the $1,350 resistance.
- Ethereum started a fresh decline after it failed to clear the $1,385 resistance zone.
- The price is now trading below $1,350 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,320 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $1,300 level to avoid a major decline in the near term.
Ethereum Price Holds Key Support
Ethereum failed to gain pace above the $1,385 and $1,400 resistance levels. ETH topped near the $1,385 level and started a fresh decline.
There was a move below the $1,360 and $1,350 support levels. Ether price even settled below the $1,350 and the 100 hourly simple moving average. A low was formed near $1,305 and the price is now slowly moving higher. There was am move above the $1,310 and $1,320 levels.
There was a break above a major bearish trend line with resistance near $1,320 on the hourly chart of ETH/USD. The price even climbed above the 23.6% Fib retracement level of the downward move from the $1,385 high to $1,305 low.
However, the price faced sellers near the $1,330 level and the 100 hourly simple moving average. On the upside, the price is facing hurdles near $1,325 and $1,330. The first major resistance is seen near the $1,350 level.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the downward move from the $1,385 high to $1,305 low is also near the $1,350 level. A clear break above $1,350 could send the price further higher. The next major resistance could be near the $1,385 level, above which the price could gain bullish momentum.
Downside Break in ETH?
If ethereum fails to climb above the $1,350 resistance, it could continue to move down. An initial support on the downside is near the $1,315 level.
The next major support is near the $1,305 level. A downside break below the $1,305 level might send the price towards the $1,250 support. Any more losses might send the price towards $1,220.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $1,305
Major Resistance Level – $1,350
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Author: Aayush Jindal