Ethereum Is In Steep Downtrend And Technicals Suggest Crucial Breakout Pattern
Ethereum is down over $150 from the $490 swing high against the US Dollar. ETH price could continue to move down if it breaks the key $300 support zone.
- ETH price is back in a bearish zone below the $400 and $350 support levels against the US Dollar.
- It traded to a new multi-week low at $309 and settled below the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower if there is a close below the $300 support in the near term.
Ethereum Price Turns Red
The decline was such that ether price even broke the $320 support and settled well below the 100 simple moving average (4-hours). It traded close to the $300 support and a new multi-week low is formed near the $309 level.
The price is currently consolidating losses and trading above $320. It seems to be facing hurdles near the 23.6% Fib retracement level of the downward move from the $400 swing high to $309 low. The first major resistance on the upside is near the $340 level.
Ethereum price trades below $320. Source: TradingView.com
There is also a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of ETH/USD. The next major resistance is near the $350 level, followed by the 50% Fib retracement level of the downward move from the $400 swing high to $309 low at $355.
To move into a positive zone, ether must climb above the $340 resistance and then gain pace above the $355 resistance zone in the coming sessions.
More Downsides in Ether (ETH)?
If Ethereum fails to clear the $440 resistance zone, it might continue to move down. An initial support is near the $410 level or the $309 low.
The next major support is near the $300 level. A successful daily close below the $300 handle could start another slide and the price might dive towards the $260 level in the near term.
4 hours MACD – The MACD for ETH/USD is gaining pace in the bearish zone.
4 hours RSI – The RSI for ETH/USD is now well below the 40 level.
Major Support Level – $300
Major Resistance Level – $355