Ethereum began a steady decline of $ 395 against the US dollar. The ETH price is now trading just above the main support of USD 360 and the 100 SMA (H4).
- ETH price is showing some bearish signs below $ 375 and $ 380 against the US dollar.
- The price still holds the support of $ 365 and the simple moving average of 100 (4 hours).
- A heavily bearish channel is forming on the 4-hour chart of ETH / USD (data feed via Kraken) with resistance near USD 372.
- The pair is likely to climb above $ 375 while trading above 100 SMA (H4).
The Ethereum price is facing hurdles
After making a significant spike near the $ 395 level, Ethereum began a steady decline against the US dollar. ETH price broke the USD 380 and USD 375 support levels to enter a short-term bearish zone.
Ether price tested the $ 360 level and stayed well above the simple moving average of 100 (4 hours). A low is being formed near USD 360 and the price is currently correcting higher. It tests the resistance level of $ 368. The reported resistance is close to the 23.6% Fib retracement level of the key drop from the high of $ 395 to the low of $ 360.
More importantly, a heavily bearish channel is forming on the ETH / USD 4 hour chart with resistance near USD 372. Above the channel resistance, the bulls could face hurdles near the $ 375 level.
The next major resistance is near the $ 378 level or the 50% fib retracement level of the key drop from the $ 395 high to the $ 360 low. A sharp break above the channel resistance and a subsequent move above the $ 378 level could open the doors to a new move higher. The next stop for the bulls could be near the USD 395 and USD 400 resistance levels.
Downside break in Ether (ETH)?
If Ethereum fails to hit the USD 372 and USD 375 resistance levels, it may go further down. The 100 simple moving average (4 hours) at $ 366 is very significant.
A decent close below 100 SMA (H4) followed by a break below the $ 365 support zone could trigger a sharp decline. The next big support on the downside is near the $ 355 level.
4 hours MACD – The MACD for ETH / USD is slowly moving back into the bullish zone.
4 hour RSI – The RSI for ETH / USD is now just below the 50 level.
Main Tier of Support – $ 365
Main Resistance Level – $ 375