Ethereum is down over 5% and it broke the key $350 support level against the US Dollar. ETH price is testing the $335 support and it remains at a risk of more losses.
- Ethereum failed to surpass the main $355 resistance zone, and declined 5%.
- The price is now trading near the $335 support and it is well below the 100 hourly simple moving average.
- There was a break below a key contracting triangle with support at $352 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover higher as long as buyers are able to protect the $335 support zone.
Ethereum Price is Testing Important Support
Ethereum made a couple of attempts to clear the $355 resistance zone, but it failed to gain bullish momentum. ETH price topped near the $355 level and recently started a sharp decline (5%).
The decline was initiated after there was a break below a key contracting triangle with support at $352 on the hourly chart of ETH/USD. Ether price gained pace below the $350 support and the 100 hourly simple moving average.
The price even spiked below the key $335 support and traded as low as $333. It is currently correcting higher and trading above $335. Ether is currently testing the 23.6% Fib retracement level of the downward move from the $355 high to $333 low.
Ethereum price dives 5%. Source: TradingView.com
On the upside, the first key resistance is near the $342 level or the 50% Fib retracement level of the downward move from the $355 high to $333 low. The main resistance is now forming near the $350 level and the 100 hourly simple moving average.
To start a fresh increase, buyers need to gain strength above the $342 and $350 resistance levels. The key breakout zone is still near the $355 level.
Downside Break in ETH?
If Ethereum fails to start a decent recovery wave above the $342 resistance, there is a risk of more losses. The main breakdown support for ether is near the $335 zone.
A daily close below the $335 support and then a follow up move below $330 could spark more losses. The next major support is near the $320 level, below which it could revisit $305.
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level, with no clear recovery signs.
Major Support Level – $335
Major Resistance Level – $342
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Author: Aayush Jindal