/Ethereum Price Action Suggest More Downsides Below $330: Here’s Why

Ethereum Price Action Suggest More Downsides Below $330: Here’s Why

Ethereum is struggling to recover above the $345 and $350 resistance levels against the US Dollar. ETH price is likely to continue lower below $330 unless it recovers above $355.

  • Ethereum corrected a few points higher, but it failed to climb above the $350 level.
  • The price is declining below $345 and it is well below the 100 hourly simple moving average.
  • There was a break below a key contracting triangle with support near $340 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue lower and it could even break the $330 low.

Ethereum Price Could Accelerate Losses

Yesterday, we saw a sharp decline in Ethereum below the $355 support level. ETH price even broke the $340 level and settled well below the 100 hourly simple moving average.

It traded to a new weekly low at $331 and recently started an upside correction. There was a recovery wave above the $340 level. Ether price even climbed above the 23.6% Fib retracement level of the downward move from the $375 high to $331 low.

However, the price struggled to continue above the $350 resistance. It remained well below the $355 resistance, and the 50% Fib retracement level of the downward move from the $375 high to $331 low.

Ethereum PriceEthereum Price

Ethereum price struggling below $350. Source: TradingView.com

There was a fresh bearish reaction and there was a break below a key contracting triangle with support near $340 on the hourly chart of ETH/USD. The pair is currently trading just below $340 and facing an increase in selling pressure.

If the price continues to move down, there is a risk of more losses below the $331 low and $330. The next major support is near the $320 level, below which the price may even retest the $310 support.

Upsides Capped in ETH?

If Ethereum starts a fresh recovery wave, it could face hurdles near the $350 level. The first major resistance is near the $355 level (the last key breakdown zone).

A successful close above the $355 resistance might push ether further higher. In the stated case, there are chances of a decent recovery above the $365 and $370 levels in the coming sessions.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is still well below the 50 level.

Major Support Level – $330

Major Resistance Level – $355

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