TA: Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $355

Aayush Jindal

1 year ago

2 mins read

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Ethereum recovered 4% and it climbed above the $350 pivot against the US Dollar. ETH price could still trim gains if it fails to clear the main $355 resistance zone.

Ethereum started a decent recovery wave above the $345 and $350 resistance levels.
The price is now well above the 100 hourly simple moving average, but it is facing hurdles near $355.
There was a break above a key bearish trend line with resistance near $342 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh decrease if there is no upside break above the main $355 resistance.

Ethereum Price Recovers 4%

Ethereum remained well bid above the $335 support level, resulting in a fresh upward move (similar to bitcoin). ETH price surpassed the $340 and $342 levels to start the current recovery wave.

More importantly, there was a break above a key bearish trend line with resistance near $342 on the hourly chart of ETH/USD. Ether price even climbed above the $350 resistance level and settled well above the 100 hourly simple moving average.

The price traded as high as $353 and it is currently consolidating gains. It seems like there is a key contracting triangle forming with support near $349 on the same chart. The triangle support is close to the 23.6% Fib retracement level of the recent increase from the $334 swing low to $353 high.

Ethereum price spikes above $350. Source: TradingView.com

On the upside, an initial resistance is near the triangle trend line at $353. The main resistance is still near the $355 level. A successful daily close above the $355 resistance could open the doors for a sharp rally towards the $365 and $370 levels in the near term. The next key resistance is near the $380 level.

Fresh Drop in ETH?

If Ethereum fails to clear the $353 resistance or $355, there are chances of a fresh drop. The first major support is near the $346 level and the 100 hourly simple moving average.

The next major support for ether is near the $344 level or the 50% Fib retracement level of the recent increase from the $334 swing low to $353 high. Any further losses will most likely clear the path for a drop towards the key $335 support zone.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently holding the 60 level and it might correct lower.

Major Support Level – $344

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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