Ethereum price is declining and trading below $390 against the US Dollar. ETH/USD must stay above the $365 support to start a fresh increase in the near term.
Ethereum Price Analysis
In the past few days, there was a steady decline in Ethereum price from well above the $400 level against the US Dollar. ETH price broke the $392 support level and settled below the 55 simple moving average (4-hours).
It even tested the $372 support level before starting an upside correction. There was a break above the $392 resistance, but the price struggled to clear the $400 resistance. There is also a major bearish trend line forming with resistance near $397 on the 4-hours chart
A high was formed near $404 and the price started a fresh decline. Ether is now trading below the $385 support and the 55 simple moving average (4-hours). It broke the 76.4% Fib retracement level of the upward move from the $373 swing low to $404 swing high.
An initial support on the downside is near the $372 level. The next major support is seen near the $365 and $362 levels. The 1.236 Fib extension level of the upward move from the $373 swing low to $404 swing high is also near the $365 level.
Any further losses could open the doors for a larger decline towards the $355 and $350 support levels in the near term. Conversely, the price might bounce back from $372 or $365.
On the upside, an initial resistance is near the $388 level. The first key resistance is forming near the $392 level and the 55 simple moving average (4-hours). A proper break above the $392 level and then a follow up move above the trend line is need for a fresh increase.
Looking at the chart, Ethereum price is clearly h testing the $372 support and there is also a major support at $365. Overall, ether must stay above $365 and then clear the $392 resistance for a fresh increase.
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently below the 40 level.
Key Support Levels – $372, followed by the $365 zone.
Key Resistance Levels – $388 and $392.
Source: Read Full Article