This Simple Technical Pattern Could Resend Ethereum Above $350
Ethereum is struggling to gain momentum above $340 and $350 against the US Dollar. ETH price could start a strong increase if it clears the 100 hourly SMA at $350.
- Ethereum is facing an uphill task near the $340 and $350 resistance levels.
- The price is trading in a range above $320 and below the 100 hourly simple moving average.
- There is a key declining channel forming with resistance near $340 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could clear the 100 hourly SMA and $350 if it surpasses the channel resistance.
Ethereum Price Facing Hurdles
Yesterday, Ethereum broke the $340 and $350 resistance levels. However, ETH price struggled to gain momentum above $355 and stayed well below the 100 hourly simple moving average, invalidating a possible bullish breakout.
Ether price started a fresh decline below the $340 support level. It broke the 50% Fib retracement level of the upward move from the $323 low to $355 high. There was also a spike below the $335 support level.
It is currently trading near the 76.4% Fib retracement level of the upward move from the $323 low to $355 high. Ether seems to be facing a major resistance near the $340 level. There is also a key declining channel forming with resistance near $340 on the hourly chart of ETH/USD.
Ethereum price trades below $340. Source: TradingView.com
If there is a break above the channel resistance, the bulls might attempt to clear the 100 hourly SMA at $350. If they succeed, there are chances of a steady rise above the $355 and $360 levels in the near term.
The next major resistance is near the $370 level, above which the price is likely to move into a positive zone and it could revisit the $400 hurdle.
Bearish Break in ETH?
If Ethereum continues to struggle near $350 and the 100 hourly SMA, there is a risk of a bearish break. An initial support on the downside is near the $325 level.
The next major support is near the $315 and $310 levels. A daily close below the $310 low is likely to spark another sharp decline. In the stated case, the price may even dive below the $300 support level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 40 level.
Major Support Level – $325
Major Resistance Level – $350
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, Khareem Sudlow
