Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Ethereum is trading near a major resistance zone at $355 against the US Dollar. ETH price is likely to accelerate higher once there is a proper close above $355.
- Ethereum is attempting a major upside break above the key $355 resistance zone.
- The price must stay above the 100 hourly simple moving average and $350 for a possible bullish break.
- There is a key contracting triangle forming with resistance near $355 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could also decline heavily below $350 if it continues to struggle near $355.
Ethereum Price is Testing Crucial Resistance
Ethereum started a fresh recovery wave from the $335 support level. ETH price settled above the $340 pivot level and it even climbed above the 100 hourly simple moving average.
The bulls were able to clear the $350 resistance, but they are facing an uphill task near the $355 level. Ether price has already made more than two attempts to clear the $355 resistance, but it failed to gain bullish momentum.
The price is currently stuck near the $355 level. The recent high was formed near $355 before there was a minor downside correction. The price spiked below the 23.6% Fib retracement level of the upward move from the $345 swing low to $355 high.
Ethereum price is testing $355. Source: TradingView.com
However, ether remained well bid above the $350 support and the 100 hourly SMA. The 50% Fib retracement level of the upward move from the $345 swing low to $355 high also acted as a support.
It seems like there is a key contracting triangle forming with resistance near $355 on the hourly chart of ETH/USD. If there is an upside break and close above $355, the price is likely to rise sharply. The next key resistance is near the $360 level, above which the price might surge towards $370.
Downside Break in ETH?
If Ethereum fails to clear the $355 resistance, there are chances of another bearish wave. An initial support on the downside is near the triangle trend line at $352.
The main support is forming near the 100 hourly SMA and the $350 level. A clear break below the $350 support level might negate the chances of a possible upward move towards $370 in the next 2-3 days.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 level, with a bearish angle.
Major Support Level – $350
Major Resistance Level – $355
