- ETH price declined heavily and it almost tested the $300 support area against the US Dollar.
- There is a connecting bearish trend line formed with resistance at $330 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair has to move past $330 and $340 resistances to recover further in the near term.
Ethereum price tumbled and declined heavily versus the US Dollar and Bitcoin. ETH/USD remains in a bearish zone as long as it is below $400.
Ethereum Price Decline
This past week, there were heavy losses noted in ETH price once it broke the $400 level against the US Dollar. The ETH/USD pair declined sharply and broke many supports such as $380, $350 and $320. The price is now well below the $340 level and the 100 simple moving average (4-hours). On the upside, an initial resistance is around the $330 level and $335 zone.
Moreover, the 23.6% fib retracement level of the last drop from the $410 high to $304 low is also a crucial barrier. Above this, there is a connecting bearish trend line formed with resistance at $330 on the 4-hours chart of ETH/USD. A push above the trend line resistance could push the price above the $344 level. The next resistance is the 50% fib retracement level of the last drop from the $410 high to $304 low at $357. Therefore, it seems like there are many barriers on the upside near the $340 and $360 zone.
The above chart indicates that ETH price is under a lot of pressure below $340. However, a close above the trend line and $357 could clear the path for more gains. On the flip side, a break below the $304 low may well take price below the $300 and $280 levels in the near term.
4-hours MACD – The MACD is mostly placed in a bearish zone.
4-hours RSI – The RSI is currently well below the 30 level.
Major Support Level – $300
Major Resistance Level – $340
Author: Aayush Jindal