Ethereum Is In Steep Downtrend And Technicals Suggest Crucial Breakout Pattern

Aayush Jindal

1 year ago

2 mins read

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Ethereum is down over $150 from the $490 swing high against the US Dollar. ETH price could continue to move down if it breaks the key $300 support zone.

ETH price is back in a bearish zone below the $400 and $350 support levels against the US Dollar.
It traded to a new multi-week low at $309 and settled below the 100 simple moving average (4-hours).
There is a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair is likely to continue lower if there is a close below the $300 support in the near term.

Ethereum Price Turns Red

In the past few sessions, there was a strong decline in Ethereum below $400 against the US Dollar. ETH price even broke the $350 support level and it dragged bitcoin lower below $10,200.

The decline was such that ether price even broke the $320 support and settled well below the 100 simple moving average (4-hours). It traded close to the $300 support and a new multi-week low is formed near the $309 level.

The price is currently consolidating losses and trading above $320. It seems to be facing hurdles near the 23.6% Fib retracement level of the downward move from the $400 swing high to $309 low. The first major resistance on the upside is near the $340 level.

Ethereum price trades below $320. Source: TradingView.com

There is also a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of ETH/USD. The next major resistance is near the $350 level, followed by the 50% Fib retracement level of the downward move from the $400 swing high to $309 low at $355.

To move into a positive zone, ether must climb above the $340 resistance and then gain pace above the $355 resistance zone in the coming sessions.

More Downsides in Ether (ETH)?

If Ethereum fails to clear the $440 resistance zone, it might continue to move down. An initial support is near the $410 level or the $309 low.

The next major support is near the $300 level. A successful daily close below the $300 handle could start another slide and the price might dive towards the $260 level in the near term.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is gaining pace in the bearish zone.

4 hours RSI – The RSI for ETH/USD is now well below the 40 level.

Major Support Level – $300

Major Resistance Level – $355

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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