Ethereum Reaches Crucial Resistance: Technicals Hint A 5% pullback is Likely

Aayush Jindal

1 year ago

2 mins read

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Ethereum is currently correcting higher above $350 against the US Dollar. ETH price is now trading near a major hurdle at $355 and it might start a fresh decline.

Ethereum is up close to 2% and it broke the $350 resistance zone.
The price is currently trading above the 100 hourly simple moving average, but facing hurdles near $355.
There is a crucial contracting triangle forming with resistance near $355 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either rally above $355 or it might restart its decline below $350.

Ethereum Price is Trading Near Key Juncture

Ethereum remained stable above the key $335 support level, and recently started a decent recovery wave. ETH price recovered nicely above the $340 and $350 resistance levels.

Ether price was able to settle above the $350 resistance and the 100 hourly simple moving average. There was also a break above the 23.6% Fib retracement level of the key downward move from the $372 swing high to $335 swing low.

The price is now trading near a crucial resistance at $355. Ether is also testing the 50% Fib retracement level of the key downward move from the $372 swing high to $335 swing low.

Ethereum price reaches $355. Source: TradingView.com

More importantly, there is a crucial contracting triangle forming with resistance near $355 on the hourly chart of ETH/USD. To continue higher, the price must break the main $355 resistance level. The next major resistance is near the $360 level, above which the price is likely to accelerate higher towards $365.

A successful close above the $355 resistance and follow up move above the $360 level could also open the doors for a steady rise towards the $400 resistance level in the coming days.

Fresh Bearish Break in ETH?

If Ethereum fails to clear the $355 resistance, there are chances of a fresh decline. An initial support on the downside is near the triangle lower trend line at $350.

The 100 hourly simple moving average is also near the $350 level. A downside break below the $350 support and the 100 hourly simple moving average may perhaps clear the path for a fresh decline towards the $335 support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.

Major Support Level – $350

Major Resistance Level – $355

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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