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Ethereum ether traded below the $ 388 and $ 380 support levels against the US dollar. ETH’s price is now testing $ 372 and remains at risk of further downsides.
- Ethereum extended its decline below the $ 392 and $ 388 support levels.
- The price is now trading well below $ 380 and the hourly simple moving average of 100.
- There has been a break below an important uptrend line with support near $ 391 on the ETH / USD hourly chart (data feed via Kraken).
- The pair is now testing crucial support for the breakdown near the $ 372- $ 373 zone.
The price of Ethereum is recovering
After hitting the $ 404 level, Ethereum started a new decline. The ETH price broke through the $ 392 and $ 388 support levels to move into a short-term bearish zone.
More importantly, there was a break below a large bullish trend line with support near $ 391 on the ETH / USD hourly chart. It opened the door for further losses below the support of $ 380 and the hourly moving average of 100. Likewise, there was a new drop in the price of bitcoin below the support zone of $ 13,500.
The ether price even fell below the 76.4% Fib retracement level of the upward move from the $ 373 swing low to the $ 404 high. It is now trading near a crucial breakout support near the $ 372- $ 373 zone.
Source: ETHUSD on TradingView.com
In the event of a bearish break below the $ 372- $ 373 support zone, the price could continue to fall towards the $ 366 and $ 365 support levels. The 1.236 Fib extension level of the upward movement from the swing low The $ 373 to $ 404 high is also close to the $ 366 level.
Any further losses below the $ 366 and $ 365 support levels could perhaps pave the way for a sustained dip towards the $ 355 support in the coming sessions. The next major support is near the $ 350 level.
Are the positives limited in ETH?
If Ethereum initiates an upward correction, the previous support near the $ 380 level is likely to act as an obstacle to the bulls. The next big resistance is near the $ 385 level.
The main resistance for the bulls is forming near the $ 388 level and the 100-hour simple moving average, above which the ether price could test or even break the $ 400 resistance zone.
Technical indicators
MACD hourly – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
RSI hourly – The RSI for ETH / USD is still well above the 60 level.
Main Support Level – $ 392
Highest Resistance Level: $ 402
