Altcoins

It is Make-or-Break Levels for Ether – Possible Sharp Turn Ahead

Ethereum traded below the $388 and $380 support levels versus the US Dollar. ETH price is presently testing $372, and it continues at a risk of more downsides.

  • Ethereum continued its decline below the $392 and $388 support levels.
  • The price is presently trading well under $380 and the 100 hourly simple moving average.
  • There was a breach below a primary bullish trend line with support near $391 on the hourly chart of ETH/USD (data feed via Kraken).
  • The dynamic duo is now testing critical breakdown support near the $372-$373 zones.

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.

The critical point, there was a break below a primary 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 the 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 crucial breakdown support near the $372-$373 zones.

Source: ETHUSD on TradingView.com

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 significant 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 significant resistance is near the $385 level.

The primary 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 levels.

Major Support Level – $392

Major Resistance Level – $402

Leave a Comment

Leave a Reply