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Ethereum struggled to keep rising and fell below $ 400 against the US dollar. The price of the ETH is consolidating losses and must rise above $ 395 for a new rally.
- ETH price corrected below the $ 400 and $ 392 support levels against the US dollar.
- The price is trading close to the $ 385 zone and the simple moving average 100 (4 hours).
- There is a large bearish trend line forming with resistance near $ 395 on the 4-hour chart of ETH / USD (data feed via Kraken).
- The pair is likely to rise if it breaks out of the $ 392, $ 395 and $ 396 resistance levels.
Ethereum’s price is facing key hurdles
Last week, Ethereum began a downward correction of well over $ 400 against the US dollar. The ETH price even traded below the $ 392 support level and the simple moving average 100 (4 hours).
A swing low was formed near $ 373 and the ether price started an upward correction after bitcoin’s sharp rise towards $ 14,000. There was a break above the $ 380 and $ 382 levels. The price even climbed above the 23.6% Fib retracement level of the downward move from the $ 410 high to the $ 373 low.
However, the price appears to encounter strong resistance near the $ 392 level. It is close to the 50% Fib retracement level of the downward move from the high of $ 410 to the low of $ 373.
Source: ETHUSD on TradingView.com
The next major resistance is near the $ 395 and $ 396 levels. There is also an important bearish trend line forming with a resistance near $ 395 on the ETH / USD 4-hour chart. A successful break above the $ 392, $ 395 and $ 396 resistance levels is needed to start a new rally in the near term.
The next resistance is near the $ 400 level, above which the bulls are likely to aim for a retest of the $ 420 resistance zone in the coming sessions.
Other downsides to Ether (ETH)?
If Ethereum fails to break out of the $ 392 and $ 395 resistance levels, a new downward correction could begin. Initial support on the downside is near the $ 382 level.
The main support is forming near the low of $ 373. Any further losses could lead the price towards the crucial support of $ 365 (a multi-touch zone).
Technical indicators
4-Hour MACD – The MACD for ETH / USD is struggling to gain momentum in the bullish zone.
4-Hour RSI – The RSI for ETH / USD is currently just below the 50 level.
Primary Support Level: $ 382
Major Resistance Level – $ 395
