Analysis

Ethereum Struggling Below $375, But 100 SMA Can Trigger A Fresh Rally

Ethereum started a steady decline from the $ 395 swing high against the US Dollar. ETH price is now trading just above the main $ 360 support and the 100 SMA (H4).

  • ETH price is showing a few bearish signs below $ 375 and $ 380 against the US Dollar.
  • The price is still holding the $ 365 support and the 100 simple moving average (4-hours).
  • There is a major declining channel forming with resistance near $ 372 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is likely to rally above $ 375 as long as it is trading above the 100 SMA (H4).

Ethereum Price is Facing Hurdles

After forming a major top near the $ 395 level, Ethereum started a steady decline against the US Dollar. ETH price broke the $ 380 and $ 375 support levels to move into a short-term bearish zone.

Ether price tested the $ 360 level and it remained well bid above the 100 simple moving average (4-hours). A low is formed near $ 360 and the price is currently correcting higher. It is testing the $ 368 resistance level. The stated resistance is close to the 23.6% Fib retracement level of the key decline from the $ 395 high to $ 360 low.

Ethereum Price

Ethereum Price

More importantly, there is a major declining channel forming with resistance near $ 372 on the 4-hours chart of ETH/USD. Above the channel resistance, the bulls might face hurdles near the $ 375 level.

The next major resistance is near the $ 378 level or the 50% Fib retracement level of the key decline from the $ 395 high to $ 360 low. A clear break above the channel resistance and then a follow up move above the $ 378 level could open the doors for a fresh increase. The next stop for the bulls could be near the $ 395 and $ 400 resistance levels.

Downside Break in Ether (ETH)?

If Ethereum fails to clear the $ 372 and $ 375 resistance levels, it might continue to move down. The 100 simple moving average (4-hours) at $ 366 holds a lot of importance.

A proper close below the 100 SMA (H4), followed by a break below the $ 365 support zone could spark a sharp decline. The next major support on the downside is near the $ 355 level.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly moving back into the bullish zone.

4 hours RSI – The RSI for ETH/USD is now just below the 50 level.

Major Support Level – $ 365

Major Resistance Level – $ 375

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Analysis – NewsBTC

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