Analysis

TA: Ethereum Price Plunges 5%, Can Buyers Save The Key $335 Support?

Ethereum is down over 5% and it broke the key $ 350 support level against the US Dollar. ETH price is testing the $ 335 support and it remains at a risk of more losses.

  • Ethereum failed to surpass the main $ 355 resistance zone, and declined 5%.
  • The price is now trading near the $ 335 support and it is well below the 100 hourly simple moving average.
  • There was a break below a key contracting triangle with support at $ 352 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could recover higher as long as buyers are able to protect the $ 335 support zone.

Ethereum Price is Testing Important Support

Ethereum made a couple of attempts to clear the $ 355 resistance zone, but it failed to gain bullish momentum. ETH price topped near the $ 355 level and recently started a sharp decline (5%).

The decline was initiated after there was a break below a key contracting triangle with support at $ 352 on the hourly chart of ETH/USD. Ether price gained pace below the $ 350 support and the 100 hourly simple moving average.

The price even spiked below the key $ 335 support and traded as low as $ 333. It is currently correcting higher and trading above $ 335. Ether is currently testing the 23.6% Fib retracement level of the downward move from the $ 355 high to $ 333 low.

Ethereum Price

Ethereum price dives 5%. Source: TradingView.com

On the upside, the first key resistance is near the $ 342 level or the 50% Fib retracement level of the downward move from the $ 355 high to $ 333 low. The main resistance is now forming near the $ 350 level and the 100 hourly simple moving average.

To start a fresh increase, buyers need to gain strength above the $ 342 and $ 350 resistance levels. The key breakout zone is still near the $ 355 level.

Downside Break in ETH?

If Ethereum fails to start a decent recovery wave above the $ 342 resistance, there is a risk of more losses. The main breakdown support for ether is near the $ 335 zone.

A daily close below the $ 335 support and then a follow up move below $ 330 could spark more losses. The next major support is near the $ 320 level, below which it could revisit $ 305.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is now well below the 40 level, with no clear recovery signs.

Major Support Level – $ 335

Major Resistance Level – $ 342

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