TA: Ethereum Consolidates Below $350: What Could Trigger A Sharp Decline?
Ethereum is currently consolidating losses below the $350 pivot against the US Dollar. ETH price remains at a risk of a sharp decline unless it surges past $345 and $350.
- Ethereum traded as low as $333 and it is currently consolidating losses.
- The price is facing a major resistance near $345 and the 100 hourly simple moving average.
- There is a short-term rising channel forming with support near $336 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could nosedive if it continues to struggle below the $345 and $350 resistance levels.
Ethereum Price Remains At Risk
Ethereum started a fresh decline after it failed to clear the $355 resistance zone. ETH broke many key supports near $350 and it even settled well below the 100 hourly simple moving average.
A new weekly low is formed near $333 and the price is currently consolidating losses. Ether corrected a few points above the $335 and $340 levels. There was also a break above the 23.6% Fib retracement level of the key decline from the $355 high to $333 low.
However, the price is facing a major resistance near the $344 and $355 levels. The 50% Fib retracement level of the key decline from the $355 high to $333 low is near the $344 level to act as a hurdle.
Ethereum price settles below $345. Source: TradingView.com
It seems like there is a short-term rising channel forming with support near $336 on the hourly chart of ETH/USD. The channel resistance is close to the $344 resistance. There is also a connecting bearish trend line forming with resistance near $345 and the 100 hourly simple moving average.
If there is no upside break above the $344 and $345 resistance levels, there is a risk of a downside break. An initial support is near the channel trend line at $336. The first major support is near the $335 zone.
A successful daily close below the $335 support and then a break below $330 could initiate a larger decline. The next major support is near the $320 level, below which it could retest $308.
Upside Break in ETH?
If Ethereum manages to clear the $344 and $345 resistance levels, it could start a steady recovery wave. The next major resistance is near the $350 level.
The main weekly resistance is still near the $355 level, above which the price is likely to start a sustained upward move towards the $370 and $380 levels.
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently declining and it might soon test the 40 level.
Major Support Level – $335
Major Resistance Level – $345