Ethereum tested the USD 370 resistance before correcting a lower value against the US dollar. ETH price could see a bigger drop if it doesn't stay above $ 350 and $ 348.
- Ethereum started a new drop after trading to a new weekly high near USD 370.
- The price is now trading below the USD 355 support and the 100 hour simple moving average.
- On the hourly chart of ETH / USD (data feed via Kraken) there was a pause below a large ascending channel with support near USD 355.
- The pair is likely to drop further if it breaks the USD 350 and USD 348 support levels.
The Ethereum price is showing bearish signs
Ethereum extended its surge above the USD 365 resistance but failed to hit the USD 370 level. A new weekly high is being formed near USD 370 and the ETH price is currently correcting lower (similar to Bitcoin).
There was a pause below the $ 365 and $ 360 levels to start the current decline. The bears pushed the ether price below the 50% fib retracement level of the uptrend from the $ 347 low to the $ 369 high.
More importantly, there was a pause on the hourly chart for ETH / USD below a large ascending channel with support near USD 355. The pair is now trading below the USD 355 support and the 100 hour simple moving average.
Ethereum price settles below $355. Source: TradingView.com
Immediate support is near the USD 352 level. It is close to the 76.4% Fib retracement level of the move up from the low of $ 347 to the high of $ 369. The first major support is near the USD 350 and USD 348 levels. Unless the ether stays above the USD 348 support level, there is a risk of a major correction.
The next major support is near the $ 342 level below which the bear could seek a test of the $ 333 support. It represents the 1.618 Fib extension level of the move up from the low of $ 347 to the high of $ 369.
New rise in ETH?
If Ethereum manages to stay above the USD 352 and USD 350 support levels, it could attempt a new spike. Initial resistance for the bulls could be $ 355.
The first major resistance could be at $ 362, above which the bulls are likely to target a new weekly high above the $ 369 level. The next major resistance is $ 375, followed by $ 388.
Hourly MACD – – The MACD for ETH / USD is now picking up pace in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is currently well below the 40 level with declining signs.
Main support tier – $ 350
Main Resistance Level – $ 362