TA: Ethereum Price Plunges 5%, Can Buyers Save The Key $335 Support?

Aayush Jindal

1 year ago

2 mins read

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Ethereum is down over 5% and it broke the key $350 support level against the US Dollar. ETH price is testing the $335 support and it remains at a risk of more losses.

Ethereum failed to surpass the main $355 resistance zone, and declined 5%.
The price is now trading near the $335 support and it is well below the 100 hourly simple moving average.
There was a break below a key contracting triangle with support at $352 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could recover higher as long as buyers are able to protect the $335 support zone.

Ethereum Price is Testing Important Support

Ethereum made a couple of attempts to clear the $355 resistance zone, but it failed to gain bullish momentum. ETH price topped near the $355 level and recently started a sharp decline (5%).

The decline was initiated after there was a break below a key contracting triangle with support at $352 on the hourly chart of ETH/USD. Ether price gained pace below the $350 support and the 100 hourly simple moving average.

The price even spiked below the key $335 support and traded as low as $333. It is currently correcting higher and trading above $335. Ether is currently testing the 23.6% Fib retracement level of the downward move from the $355 high to $333 low.

Ethereum price dives 5%. Source: TradingView.com

On the upside, the first key resistance is near the $342 level or the 50% Fib retracement level of the downward move from the $355 high to $333 low. The main resistance is now forming near the $350 level and the 100 hourly simple moving average.

To start a fresh increase, buyers need to gain strength above the $342 and $350 resistance levels. The key breakout zone is still near the $355 level.

Downside Break in ETH?

If Ethereum fails to start a decent recovery wave above the $342 resistance, there is a risk of more losses. The main breakdown support for ether is near the $335 zone.

A daily close below the $335 support and then a follow up move below $330 could spark more losses. The next major support is near the $320 level, below which it could revisit $305.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 40 level, with no clear recovery signs.

Major Support Level – $335

Major Resistance Level – $342

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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