Ethereum faced a strong rejection above $ 380 against the US Dollar. ETH price is now at a risk of a sharp decline if it breaks the key $ 365 support in the near term.
- Ethereum struggled to gain momentum above the $ 380 and $ 382 levels.
- The price declined sharply below the 100 hourly simple moving average, and retested $ 365.
- There is a key bearish trend line forming with resistance near $ 378 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline heavily if there is a clear break below the $ 365 support level.
Ethereum Price Showing Bearish Signs
Ethereum started a steady decline from well above the $ 385 level. ETH price faced a strong resistance near the $ 380 and $ 382 levels, resulting in a drop below the $ 375 support.
Ether price even broke the $ 370 support and settled well below the 100 hourly simple moving average. It retested the key $ 365 support level and it is currently consolidating losses. An initial resistance is near the $ 372 level.
The first major resistance is near the $ 374 level or the 50% Fib retracement level of the recent decline from the $ 382 high to $ 365 low. More importantly, there is a key bearish trend line forming with resistance near $ 378 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The trend line is close to the 100 hourly simple moving average and the 76.4% Fib retracement level of the recent decline from the $ 382 high to $ 365 low. If there is no recovery above $ 374 and $ 378, there is a risk of a downside break below the $ 365 support.
A proper close below the $ 365 support may perhaps open the doors for a larger decline. The next major support is near the $ 355 level.
Fresh Increase in ETH?
If Ethereum stays above the $ 365 support, it could start a fresh increase. The first key resistance is near the $ 374 level, but the main hurdle is now forming near $ 378.
A clear break above the trend line resistance, $ 378, and the 100 hourly simple moving average could open the doors for a steady rise towards the $ 388 and $ 392 levels in the coming sessions.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $ 365
Major Resistance Level – $ 374