Ethereum Could Narrowly Avoid a Major Decline if it Closes Above One Key Level

Aayush Jindal

Last Updated: June 11, 2024 2:15 pm

2 mins read

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Ethereum spiked below the $400 support before recovering higher against the US Dollar. ETH price must surpass the $420 resistance and the 100 hourly SMA to start a fresh increase.

Ethereum is currently holding the $405 and $400 support levels.
The price is facing a major barrier near the $420 level and the 100 hourly simple moving average.
There was a break above a crucial bearish trend line with resistance near $407 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a strong increase if it clears the $418 and $420 resistance levels.

Ethereum Price Testing Breakout Zone

After a sharp decline, Ethereum found support near the $392 level against the US Dollar. ETH started a decent recovery wave and climbed back above the $400 pivot level.

There was a break above the $405 level, but ether price is still below the 100 hourly simple moving average. It managed to recover above the 23.6% Fib retracement level of the downward move from the $447 swing high to $393 low.

Moreover, there was a break above a crucial bearish trend line with resistance near $407 on the hourly chart of ETH/USD. Ethereum is now facing a major barrier near the $420 level and the 100 hourly simple moving average.

Ethereum price trades above $410. Source: TradingView.com

The 50% Fib retracement level of the downward move from the $447 swing high to $393 low is also acting as a key breakout zone. If there is a successful break above the $418 and $420 resistance levels, the price might start a steady increase.

The next major resistance is near the $426 level, above which the bulls are likely to aim a larger upward move towards the $445 and $450 resistance levels in the coming sessions.

Another Failure for ETH?

If Ethereum fails to recover above $418 or $420, it could resume its decline. An initial support on the downside is near the $408 level. The first major support could be $405, below which the bulls might struggle to protect $400.

A successful close below the $400 support level might start a steady decline. The next support is at $392, followed by the key breakdown zone at $385.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.

Hourly RSI – The RSI for ETH/USD is now just above the 50 level.

Major Support Level – $405

Major Resistance Level – $420

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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