Ethereum is struggling to recover above the $345 and $350 resistance levels against the US Dollar. ETH price is likely to continue lower below $330 unless it recovers above $355.
- Ethereum corrected a few points higher, but it failed to climb above the $350 level.
- The price is declining below $345 and it is well below the 100 hourly simple moving average.
- There was a break below a key contracting triangle with support near $340 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower and it could even break the $330 low.
Ethereum Price Could Accelerate Losses
Yesterday, we saw a sharp decline in Ethereum below the $355 support level. ETH price even broke the $340 level and settled well below the 100 hourly simple moving average.
It traded to a new weekly low at $331 and recently started an upside correction. There was a recovery wave above the $340 level. Ether price even climbed above the 23.6% Fib retracement level of the downward move from the $375 high to $331 low.
However, the price struggled to continue above the $350 resistance. It remained well below the $355 resistance, and the 50% Fib retracement level of the downward move from the $375 high to $331 low.
Ethereum price struggling below $350. Source: TradingView.com
There was a fresh bearish reaction and there was a break below a key contracting triangle with support near $340 on the hourly chart of ETH/USD. The pair is currently trading just below $340 and facing an increase in selling pressure.
If the price continues to move down, there is a risk of more losses below the $331 low and $330. The next major support is near the $320 level, below which the price may even retest the $310 support.
Upsides Capped in ETH?
If Ethereum starts a fresh recovery wave, it could face hurdles near the $350 level. The first major resistance is near the $355 level (the last key breakdown zone).
A successful close above the $355 resistance might push ether further higher. In the stated case, there are chances of a decent recovery above the $365 and $370 levels in the coming sessions.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still well below the 50 level.
Major Support Level – $330
Major Resistance Level – $355