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Ethereum corrected lower below the $380 level, but it found support near $365 against the US Dollar. ETH price is currently rising, but it must surpass the key $380 zone for a strong upward move.
- Ethereum is currently recovering from $365 and trading above the $372 level.
- The price is facing a strong resistance near the $380 zone and the 100 hourly simple moving average.
- There is a key declining channel forming with resistance near $380 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to climb higher towards $400 if it clears the $380 confluence resistance.
Ethereum Price Approaching Major Hurdle
In the past few sessions, Ethereum saw a steady decline from the $395 zone. ETH price broke the key $380 support level and settled below the 100 hourly simple moving average.
There was also a break below the $370 level, but ether price found support near the $365 level. A low is formed near $365 and the price is currently recovering higher. It broke the $370 level, plus the 23.6% Fib retracement level of the downward move from the $388 high to $365 low.
An immediate resistance is near the $375 level. The 50% Fib retracement level of the downward move from the $388 high to $365 low is also near the $376 level to act as a hurdle.
Ethereum price approaching $380. Source: TradingView.com
More importantly, there is a key declining channel forming with resistance near $380 on the hourly chart of ETH/USD. An intermediate resistance for Ethereum is near the $378 level and the 100 hourly SMA.
Ether is clearly facing a confluence resistance near the $378 and $380 levels. A successful break above the channel and $380 could open the doors for a strong increase in the near term. The next major resistance on the upside is near the $395 level, followed by $400.
Fresh Decline in ETH?
If Ethereum fails to surpass $375, $378, and the channel resistance, there is a risk of a fresh decline. An initial support is near the $370 level.
The next major support for the bulls is near the $365 level, below which the bears are likely to aim a test of the key $355 support zone in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still below the 50 level.
Major Support Level – $380
Major Resistance Level – $365
