/Ethereum Is In Steep Downtrend And Technicals Suggest Crucial Breakout Pattern

Ethereum Is In Steep Downtrend And Technicals Suggest Crucial Breakout Pattern

Ethereum is down over $150 from the $490 swing high against the US Dollar. ETH price could continue to move down if it breaks the key $300 support zone.

  • ETH price is back in a bearish zone below the $400 and $350 support levels against the US Dollar.
  • It traded to a new multi-week low at $309 and settled below the 100 simple moving average (4-hours).
  • There is a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue lower if there is a close below the $300 support in the near term.

Ethereum Price Turns Red

In the past few sessions, there was a strong decline in Ethereum below $400 against the US Dollar. ETH price even broke the $350 support level and it dragged bitcoin lower below $10,200.

The decline was such that ether price even broke the $320 support and settled well below the 100 simple moving average (4-hours). It traded close to the $300 support and a new multi-week low is formed near the $309 level.

The price is currently consolidating losses and trading above $320. It seems to be facing hurdles near the 23.6% Fib retracement level of the downward move from the $400 swing high to $309 low. The first major resistance on the upside is near the $340 level.

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Ethereum price trades below $320. Source: TradingView.com

There is also a crucial bearish trend line forming with resistance near $340 on the 4-hours chart of ETH/USD. The next major resistance is near the $350 level, followed by the 50% Fib retracement level of the downward move from the $400 swing high to $309 low at $355.

To move into a positive zone, ether must climb above the $340 resistance and then gain pace above the $355 resistance zone in the coming sessions.

More Downsides in Ether (ETH)?

If Ethereum fails to clear the $440 resistance zone, it might continue to move down. An initial support is near the $410 level or the $309 low.

The next major support is near the $300 level. A successful daily close below the $300 handle could start another slide and the price might dive towards the $260 level in the near term.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is gaining pace in the bearish zone.

4 hours RSI – The RSI for ETH/USD is now well below the 40 level.

Major Support Level – $300

Major Resistance Level – $355

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