Ethereum (ETH) Price Dives 20%: Recovery Could Be Difficult
- ETH price topped near the $364 level and declined sharply below $350 against the US Dollar.
- The price is down more than 20% from highs and it is now trading below $310.
- This week’s followed key bullish trend line was breached with support near $318 on the hourly chart of ETH/USD (data feed via Kraken).
- There were sharp losses noted in bitcoin, ripple, bitcoin cash and a few other major altcoins.
Ethereum price is back in a short term bearish zone versus the US Dollar and bitcoin. ETH price could recover above $300, but it is likely to face resistance near $310 or $320.
Ethereum Price Analysis
In the past few sessions, there was a sharp increase in selling on Ethereum and bitcoin against the US Dollar. The ETH/USD pair topped near the $364 level and declined sharply below $350. It broke the main support near the $320 level and the 100 hourly simple moving average. The decline was such that there was a close below the $320 and $318 pivot levels.
Moreover, this week’s followed key bullish trend line was breached with support near $318 on the hourly chart of ETH/USD. Ethereum price is now trading well below the $310 level and it recently declined towards the $275 level. A swing low was formed near $274 and the price is currently correcting higher. It recovered above $290 plus the 50% Fib retracement level of the recent decline from the $314 high to $274 swing low.
However, Ether is facing a strong resistance near the $300 level. Moreover, the 61.8% Fib retracement level of the recent decline from the $314 high to $274 swing low is acting as a hurdle. More importantly, there is a connecting bearish trend line forming with resistance near $300 on the same chart.
It seems like the price may correct higher above $300 in the short term. However, the bulls are likely to face a strong resistance near the $310 and $315 levels. The main resistance is now near $318 and the 100 hourly SMA. A successful close above $320 is needed for the bulls to gain traction.
Looking at the chart, Ethereum price moved back in a bearish zone below $320 and $310. A convincing recovery won’t be easy above $310 or $320. If the price continues to struggle near $300 or $310, there are chances of a fresh decline towards $280 or $275 in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is slowly recovering from 30 and it is currently near 42.
Major Support Level – $280
Major Resistance Level – $310
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via https://www.ohnocrypto.com/ Aayush Jindal, Khareem Sudlow