Ethereum is struggling to gain ground above $1,350 against the US dollar. ETH needs to break through the $1,380 and $1,400 levels to begin a steady rise.
- Ethereum is facing increased selling below the $1,400 level.
- The price is now trading below $1,400 and the 100 hourly simple moving average.
- A new bearish trend line is forming with resistance near $1,350 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rally further if there is a clear move above the $1,400 resistance zone.
Ethereum price recovers slightly
Ethereum formed a base above the $1,300 level and recently launched a upward correction. ETH was able to recover above the $1,320 and $1,325 levels.
There was a move above the $1,350 resistance. Ether price climbed above the 38.2% Fib retracement level of the downward move from the $1,475 high to $1,282 low. The price even broke above the $1,375 level, but the benefits were limited.
The price failed to gain momentum above the 50% Fib retracement level of the downward move from the $1,475 high to $1,282 low. It is now trading below $1,400 and the 100 hourly simple moving average.
On the upside, the price faces resistance near the $1,350 level. There is also a new bearish trend line forming with resistance near $1,350 on the hourly chart of ETH/USD. The next major resistance is near $1,380 and the 100 hour simple moving average.
Source: ETHUSD on TradingView.com
The main resistance is seen near the $1,400 level. A clean break above $1,400 could trigger a decent rise towards the $1,450 level. Any further gains could perhaps open the doors for a move towards the $1,500 resistance.
New decline of ETH?
If Ethereum fails to break above the $1,350 resistance and the 100 hourly simple moving average, it could start a fresh decline. An initial downside support is seen near the $1,300 area.
The next major support is near $1,280. A break down below the $1,280 support could increase the selling pressure. In the indicated case, the price of Ether could drop towards the $1,200 level in the short term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,300
Major resistance level – $1,400