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Ethereum Lacks Momentum Above $370: Here’s Why Bulls Are Comfortable

Aayush Jindal
Aayush Jindal
1 year ago
2 mins read
Ethereum

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Ethereum failed to continue high above $390 against the US Dollar. ETH price is currently trading above a crucial support at $350, below which it could turn negative.

  • Ethereum declined below the $375 support after it failed near the $390 level.
  • The price is now trading below the 100 hourly simple moving average, but it is well above $350.
  • There is a crucial bullish trend line forming with support near $358 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 in the near term.

Ethereum Price Testing Key Support

There was a decent upward move in Ethereum above the $350 and $370 resistance levels. ETH price even broke the $375 resistance zone and the 100 hourly simple moving average.

However, the price failed to test the $400 barrier and recently started a fresh decline from the $390 high. It broke the $375 and $370 support levels to move into a short-term bearish zone. The decline gained pace below the $365 level and the 100 hourly SMA.

The price is now trading below the 100 hourly simple moving average, but it is well above the key $350 support. A low is formed near $353 and ether price is attempting a fresh increase.

Ethereum Price

Ethereum price trades below $370. Source: TradingView.com

It broke the 23.6% Fib retracement level of the recent decline from the $390 high to $353 low. There is also a crucial bullish trend line forming with support near $358 on the hourly chart of ETH/USD. If ether stays above the trend line support, it could rise above the $370 resistance.

The first major resistance is near the $372 level or the 50% Fib retracement level of the recent decline from the $390 high to $353 low. The next major resistance is near the $375 level, above which the price is likely to rise steadily towards the $400 resistance zone.

Bearish Break in ETH?

If Ethereum fails to clear the $370 and $375 resistance levels, there is a risk of a downside break. The trend line support holds the key, followed by the $350 level.

A successful break and close below the $350 support level is likely to put a lot of pressure on the bulls, and the price might decline towards the $325 support.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently struggling below the 50 level.

Major Support Level – $350

Major Resistance Level – $370

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Aayush Jindal
Aayush Jindal

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.

Read more

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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