- Ethereum price declined sharply below $400 and found support near $310 against the US Dollar.
- ETH price is likely forming a support base above $310 and it might start a decent recovery.
- There is a key bearish trend line forming with resistance near $355 on the 4-hours chart (data feed from Coinbase).
- The pair could recover towards the 55 simple moving average (4-hours) if it clears the $360 resistance.
Ethereum price is showing a few positive signs above $340 against the US Dollar. It seems like ETH/USD is aiming a larger recovery above the $360 resistance in the near term.
Ethereum Price Analysis
After forming a key top near the $490 level, Ethereum price started a fresh decline against the US Dollar. ETH price broke many key supports near $400 to move into a bearish zone.
The decline was such that the price settled below the $360 support and the 55 simple moving average (4-hours). It even broke the $330 support and traded as low as $310. Recently, the price started an upside correction after forming a support base above the $310 level.
There was a break above the $320 and $330 resistance levels. It is now testing the 23.6% Fib retracement level of the downward move from the $488 high to $310 swing low.
However, the price is facing a major resistance near the $355 and $360 levels (the recent breakdown zone). There is also a key bearish trend line forming with resistance near $355 on the 4-hours chart.
If there is an upside break above the trend line resistance, the price could revisit the $376 resistance. The next major resistance is near the $400 level and the 55 simple moving average (4-hours). It is close to the 50% Fib retracement level of the downward move from the $488 high to $310 swing low.
On the downside, the price is likely to find bids near the $340 level. The main support is now forming near the $310 level, below which there are chances of a bearish acceleration towards $250.
Looking at the chart, Ethereum price is clearly recovering higher and trading nicely above the $340 level. Overall, the price could recover towards the 55 simple moving average (4-hours) if it clears the $360 resistance.
Technical indicators
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is still below the 50 level.
Key Support Levels – $340, followed by the $310 zone.
Key Resistance Levels – $360 and $376.
