Ethereum price started a downside correction from the $421 swing high against the US Dollar.
ETH price is currently trading well above $380 and testing the 55 simple moving average (4-hours).
There was a break below a major declining channel with support near $400 on the 4-hours chart (data feed from Coinbase).
The pair is currently holding the main $380 support level, but it must clear $402 for a fresh increase.
Ethereum price is correcting losses and holding the $380 support against the US Dollar. It seems like ETH/USD might continue above $380 before the next major move.
Ethereum Price Analysis
In the past few days, there was a decent increase in Ethereum price above the $400 level against the US Dollar. ETH price broke the $410 resistance and settled nicely above the 55 simple moving average (4-hours).
It traded to a new monthly high near $421 before starting a major downside correction. There was a break below the $410 and $402 support levels. Moreover, there was a break below a major declining channel with support near $400 on the 4-hours chart.
The price even traded below the 50% Fib retracement level of the upward move from the $365 swing low to $421 swing high. However, the bulls were able to defend the main $380 support zone (the last major breakout zone).
The 61.8% Fib retracement level of the upward move from the $365 swing low to $421 swing high is also acting as a strong support. The price is now trading well above $380 and testing the 55 simple moving average (4-hours).
On the upside, an initial resistance is near the $400 level and the broken channel trend line. The main resistance is forming near the $402 level (the recent breakdown zone). If there is an upside break above the $400 and $402 resistance levels, the price could start a fresh increase.
A proper break above the $405 level is likely to open the doors for a push towards the $420 and $421 levels. Any further gains could lead the price towards the $435 resistance level.
Looking at the chart, Ethereum price is clearly holding the main $380 support and testing the 55 simple moving average (4-hours). Overall, ether is currently holding the main $380 support level, but it must clear $402 for a fresh increase.
4 hours MACD – The MACD for ETH/USD is showing struggle signs in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently close to the 40 level.
Key Support Levels – $385, followed by the $380 zone.
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