Ethereum’s ether traded below the $388 and $380 support levels against the US Dollar. ETH price is now testing $372 and it remains at a risk of more downsides.
- Ethereum extended its decline below the $392 and $388 support levels.
- The price is now trading well below $380 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $391 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now testing a crucial breakdown support near the $372-$373 zone.
Ethereum Price is Recovering
After topping near the $404 level, Ethereum started a fresh decline. ETH price broke the $392 and $388 support levels to move into a short-term bearish zone.
More importantly, there was a break below a major bullish trend line with support near $391 on the hourly chart of ETH/USD. It opened the doors for more losses below the $380 support and the 100 hourly simple moving average. Similarly, there was a fresh decline in bitcoin price below the $13,500 support zone.
Ether price even declined below the 76.4% Fib retracement level of the upward move from the $373 swing low to $404 swing high. It is now trading near a crucial breakdown support near the $372-$373 zone.
Source:
If there is a downside break below the $372-$373 support zone, the price could continue to move down towards the $366 and $365 support levels. The 1.236 Fib extension level of the upward move from the $373 swing low to $404 swing high is also near the $366 level.
Any further losses below the $366 and $365 support levels may perhaps clear the path for an extended decline towards the $355 support in the coming sessions. The next major support is near the $350 level.
Upsides Capped in ETH?
If Ethereum starts an upside correction, the previous support near the $380 level is likely to act as a hurdle for the bulls. The next major resistance is near the $385 level.
The main resistance for the bulls is forming near the $388 level and the 100 hourly simple moving average, above which ether price could test or even break the $400 resistance zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well above the 60 level.
Major Support Level – $392
Major Resistance Level – $402
