Ethereum Recovers 8%, But Here’s Why It Could Resume Its Decline

Aayush Jindal

Last Updated: June 11, 2024 2:16 pm

2 mins read

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Ethereum found support near $310 and started an upside correction against the US Dollar. ETH price recovered 8%, but it is facing many hurdles near $360 and $370.

Ethereum is up over 8% and it broke the $335 and $340 resistance levels.
The price is still well below the $370 resistance and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $350 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its decline if it fails to overcome the main $370 resistance zone.

Ethereum Price Facing Hurdles

After dropping below the $350 support, Ethereum extended its decline below the $335 support. ETH price even broke the $320 support and settled below the 100 hourly simple moving average.

A new monthly low is formed near $310 and ether recently started an upside correction (similar to bitcoin). There was a break above the $325 and $335 resistance levels. More importantly, there was a break above a key bearish trend line with resistance near $350 on the hourly chart of ETH/USD.

The pair surpassed the $350 resistance, but it faced hurdles near the $360 level (the previous support and now a major resistance). A high is formed near $360 and ether price is currently declining below $350. It broke the 23.6% Fib retracement level of the recent upward move from the $310 low to $360 swing high.

Ethereum price trades below $360. Source: TradingView.com

An initial support on the downside is near the $340 level. The first major support is near the $335 level. It is close to the 50% Fib retracement level of the recent upward move from the $310 low to $360 swing high.

To start a fresh increase, the price must break the $360 and $370 resistance levels. A successful close above $370 is must for a decent move towards the $400 barrier.

Fresh Decline in ETH?

If Ethereum fails to correct higher above the $360 and $370 resistance levels, it is likely to continue lower. An initial support on the downside is near the $335 level.

A downside break below $340 and $335 could spark a fresh decline. The next major support is near the $322 level, below which there is a risk of a breakdown below the $310 support level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still well below the 50 level.

Major Support Level – $335

Major Resistance Level – $371

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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