- Ethereum price started a major downside correction after trading above $360 against the US Dollar.
- ETH price traded below the $350 and $320 support levels to enter a bearish zone.
- There is a major bullish trend line forming with support near $280 on the 4-hours chart (data feed from Coinbase).
- The price could extend losses if it breaks the $280 and $275 support levels in the near term.
Ethereum price is in a declining phase below $300 against the US Dollar. ETH might continue to decline unless there is a successful close above the $300 and $307 levels.
Ethereum Price Analysis
After trading with a bullish bias towards $365, Ethereum price started a downside correction against the US Dollar. The ETH/USD pair started a major downside correction and broke the $350 and $320 support levels. Moreover, there was a close below the $320 level and the 55 simple moving average (4-hours). Finally, the price even broke the $300 support and tested the $275 support.
The last swing low was formed near $279 and the price is currently correcting higher. It is trading near the $288 level and the 23.6% Fib retracement level of the recent drop from the $324 high to $279 low. On the upside, there are a few important resistances near $300 and $301. The 50% Fib retracement level of the recent drop from the $324 high to $279 low is near the $301 level to act as a resistance.
Above $301, the next main resistance is near the $307 level and the 55 simple moving average (4-hours). A successful close above the 55 simple moving average (4-hours) might increase the chances of more gains above the $325 resistance.
On the downside, an initial support is near the $280 level. Moreover, there is a major bullish trend line forming with support near $280 on the 4-hours chart. Below the trend line, the final uptrend support is near the $275 level. If Ethereum price fails to stay above the $275 support, there could be more downsides towards the $250 level.
Looking at the chart, Ethereum price is struggling to recover above the $295, $300 and $301 levels. As long as the price is below $300 and $307, there is a risk of more losses. Once there is a close above the $307 level, the bulls may take over and push the price above the $320 and $325 levels.
Technical indicators
4 hours MACD – The MACD for ETH/USD is currently losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently above the 40 level, with a flat structure.
Key Support Levels – $280, followed by the $275 zone.
Key Resistance Levels – $301 and $307.
