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Ethereum fell 5% and broke the $ 400 main support against the US dollar. ETH price is recovering from the $ 385 support, but it could run into hurdles near $ 400.
- Ethereum fell 5% and broke the $ 400 and $ 395 support levels.
- The price is currently recovering from $ 385 but is well below the 100-hour simple moving average.
- There is a key bearish trend line forming with resistance near $ 400 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could resume its decline unless it clears the $ 400 resistance area in the near term.
Ethereum Price Is Down 5%
Yesterday we discussed the possibilities of Ethereum’s sharp drop below the $ 400 support. The price of ETH failed to break out of the $ 410 resistance and dropped sharply (unlike bitcoin) below the levels of support of $ 400 and $ 395.
The decline increased below $ 395 and the price stabilized below the 100-hour simple moving average. It tested the $ 385 support zone and a low formed near $ 383. The price of Ether is currently recovering and trading above the $ 390 level.
There was a break above the 23.6% Fib retracement level of the recent drop from the high of $ 418 to the low of $ 383. On the upside, the price is facing many hurdles near the $ 395 and $ levels. 400.
Source: ETHUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $ 400 on the hourly chart of ETH / USD. The trend line is close to the 100-hour simple moving average and the 50% Fib retracement level of the recent drop from the high of $ 418 to the low of $ 383.
To return to a positive zone, the price of ether must break through the $ 400 resistance level and settle well above the 100-hour simple moving average. The next upside could be near the overhead resistance of $ 410.
More losses in ETH?
If Ethereum fails to break out of the $ 395 and $ 400 resistance levels, there is a risk of further losses. Initial support on the downside is near the $ 388 level.
Major support appears to be forming near the $ 385 level. A clear break below the $ 385 support zone could initiate a sustained drop in the ether to the $ 368 support level in the coming sessions.
Technical indicators
MACD hourly – The MACD for ETH / USD is struggling to pick up the pace in the bullish zone.
RSI hourly – The RSI for ETH / USD is recovering and is approaching the 40 level.
Main Support Level: $ 385
Major Resistance Level – $ 400
