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Ethereum nosedived and broke the $400 support zone against the US Dollar. ETH price could correct higher, but the previous support near $400 is likely to act as a major hurdle.
- Ethereum is down over 10% and it broke the $420 and $400 support levels.
- The price even traded below the $385 support and settled below the 100 hourly simple moving average.
- There is a crucial bearish trend line forming with resistance near $400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher in the short-term, but sellers are likely to remain active near $400.
Ethereum Price Dives 10%
In the past three sessions, there was a strong decline in bitcoin and Ethereum below $11,000 and $400 respectively against the US Dollar. ETH price is down over 10% and it broke the $420 and $400 support levels.
The decline was such that the price even traded below the $385 support and settled below the 100 hourly simple moving average. A new monthly low is formed near $371 and ether is currently consolidating losses.
An initial resistance is near the $390 level. It is close to the 23.6% Fib retracement level of the recent slide from the $445 swing high to $371 low. The first major resistance on the upside is near the $400 level (the previous support and now a major resistance).
Ethereum price trades below $400. Source: TradingView.com
There is also a crucial bearish trend line forming with resistance near $400 on the hourly chart of ETH/USD. The next major resistance is near the $410 level since it is close to the 50% Fib retracement level of the recent slide from the $445 swing high to $371 low.
A successful break above the trend line and then $410 is must to start a fresh increase in the near term. The next key hurdle for the bulls could be $428 and the 100 hourly SMA.
More Losses in ETH?
If Ethereum fails to correct higher above the $400 resistance, it is likely to continue lower. An initial support on the downside is near the $375 level.
A downside break below $375 and $370 could spark a larger decline. The next major support is near the $350 level, where the bulls are likely to take a stand.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level.
Major Support Level – $370
Major Resistance Level – $400
