Ethereum recovered above the $350 resistance zone against the US Dollar. ETH price tested the $375 zone and it is currently correcting lower towards the $350 support.
- Ethereum is currently correcting lower from the $370 and $375 resistance levels.
- The price is now approaching the 100 hourly simple moving average and the $350 support.
- There is a declining channel or a bearish flag forming with resistance near $364 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $350 support level to start a fresh increase to $400 in the near term.
Ethereum Price Approaching Strong Support
Yesterday, we saw a strong increase in Ethereum above the $350 resistance level. ETH price even broke the $360 resistance zone and there was a close above the 100 hourly simple moving average.
The price traded to a new weekly high at $377 and it is currently correcting lower. Ether is trading below the $370 and $368 levels. There was a break below the 23.6% Fib retracement level of the upward move from the $325 swing low to $377 high.
The price is now approaching the 100 hourly simple moving average and the $350 support. There is also a declining channel or a bearish flag forming with resistance near $364 on the hourly chart of ETH/USD.
Ethereum price trades below $370. Source: TradingView.com
The channel support is near the 50% Fib retracement level of the upward move from the $325 swing low to $377 high. More importantly, the previous resistance near the $350 and $355 levels could provide strong support in the near term.
On the upside, the price is facing a short-term resistance near the channel resistance at $365. A successful close above the $365 resistance may perhaps open the doors for more gains above the $370 level. The next major resistance is near the $378 and $380 levels, above which the price is likely to rise steadily towards the $400 resistance zone.
Bearish Break in ETH?
If Ethereum fails to clear the $365 resistance or the $370 level, there is a risk of a downside break. The main support on the downside is near the $350 level.
A daily close below the $350 support level is likely to start a fresh decline. In the stated case, the bears might aim a retest of the $325 swing low.
Hourly MACD – The MACD for ETH/USD is currently moving in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently just above the 40 level.
Major Support Level – $350
Major Resistance Level – $365