Ethereum Lacks Momentum Above $370: Here’s Why Bulls Are Comfortable
Ethereum failed to continue high above $390 against the US Dollar. ETH price is currently trading above a crucial support at $350, below which it could turn negative.
- Ethereum declined below the $375 support after it failed near the $390 level.
- The price is now trading below the 100 hourly simple moving average, but it is well above $350.
- There is a crucial bullish trend line forming with support near $358 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $350 support level to start a fresh increase in the near term.
Ethereum Price Testing Key Support
There was a decent upward move in Ethereum above the $350 and $370 resistance levels. ETH price even broke the $375 resistance zone and the 100 hourly simple moving average.
However, the price failed to test the $400 barrier and recently started a fresh decline from the $390 high. It broke the $375 and $370 support levels to move into a short-term bearish zone. The decline gained pace below the $365 level and the 100 hourly SMA.
The price is now trading below the 100 hourly simple moving average, but it is well above the key $350 support. A low is formed near $353 and ether price is attempting a fresh increase.
Ethereum price trades below $370. Source: TradingView.com
It broke the 23.6% Fib retracement level of the recent decline from the $390 high to $353 low. There is also a crucial bullish trend line forming with support near $358 on the hourly chart of ETH/USD. If ether stays above the trend line support, it could rise above the $370 resistance.
The first major resistance is near the $372 level or the 50% Fib retracement level of the recent decline from the $390 high to $353 low. The next major resistance is near the $375 level, above which the price is likely to rise steadily towards the $400 resistance zone.
Bearish Break in ETH?
If Ethereum fails to clear the $370 and $375 resistance levels, there is a risk of a downside break. The trend line support holds the key, followed by the $350 level.
A successful break and close below the $350 support level is likely to put a lot of pressure on the bulls, and the price might decline towards the $325 support.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently struggling below the 50 level.
Major Support Level – $350
Major Resistance Level – $370