Analysis

Ethereum Tumbles To $330: Here’s A Crucial Support Turned Resistance

Ethereum is down over 8% and it broke many key supports near $ 355 against the US Dollar. ETH price is currently consolidating losses and it is likely to face hurdles near $ 355 or $ 362.

  • Ethereum started a sharp decline from the $ 375 resistance and broke the $ 355 support.
  • The price is finding bids above $ 330, but it is now well below the 100 hourly simple moving average.
  • There is a short-term breakout pattern forming with resistance near $ 348 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to face a strong resistance near the $ 355 zone (support turned resistance).

Ethereum Price Turns Red

Yesterday, we discussed the chances of a fresh decline in Ethereum if it fails to clear $ 375 and $ 380. ETH price struggled to clear the $ 375 resistance zone, resulting in a sharp bearish reaction.

The decline was initiated after there was a break below key declining channel with support at $ 365 on the hourly chart of ETH/USD. Ether price accelerated its decline below the main $ 355 support level and the 100 hourly simple moving average.

It is down over 8% and a new weekly low is formed near $ 331. Ethereum is currently correcting higher and trading above the $ 340 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $ 375 high to $ 331 low.

Ethereum Price

Ethereum price dives below $ 355. Source: TradingView.com

It seems like there is a short-term breakout pattern forming with resistance near $ 348 on the same chart. If there is an upside correction above the $ 348 level, ether could face a strong selling interest near the $ 355 zone (support turned resistance).

The 50% Fib retracement level of the recent decline from the $ 375 high to $ 331 low is also near $ 353 to act as a resistance. The next major hurdle is seen near the $ 365 level or the 100 hourly SMA.

More Losses in ETH?

If Ethereum fails to recover above the triangle resistance of the $ 355 hurdle, there is a risk of more losses. An initial support is near the triangle support at $ 341.

A downside break below the triangle support could lead the price back towards the $ 330 swing low. The next major support for the bulls is near the $ 320 level, below which it could retest the $ 310 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving in the bullish zone.

Hourly RSIThe RSI for ETH/USD is correcting higher towards the 50 level.

Major Support Level – $ 330

Major Resistance Level – $ 355

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