Ethereum Reaches Crucial Resistance: Technicals Hint A 5% pullback is Likely
Ethereum is currently correcting higher above $350 against the US Dollar. ETH price is now trading near a major hurdle at $355 and it might start a fresh decline.
- Ethereum is up close to 2% and it broke the $350 resistance zone.
- The price is currently trading above the 100 hourly simple moving average, but facing hurdles near $355.
- There is a crucial contracting triangle forming with resistance near $355 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could either rally above $355 or it might restart its decline below $350.
Ethereum Price is Trading Near Key Juncture
Ethereum remained stable above the key $335 support level, and recently started a decent recovery wave. ETH price recovered nicely above the $340 and $350 resistance levels.
Ether price was able to settle above the $350 resistance and the 100 hourly simple moving average. There was also a break above the 23.6% Fib retracement level of the key downward move from the $372 swing high to $335 swing low.
The price is now trading near a crucial resistance at $355. Ether is also testing the 50% Fib retracement level of the key downward move from the $372 swing high to $335 swing low.
Ethereum price reaches $355. Source: TradingView.com
More importantly, there is a crucial contracting triangle forming with resistance near $355 on the hourly chart of ETH/USD. To continue higher, the price must break the main $355 resistance level. The next major resistance is near the $360 level, above which the price is likely to accelerate higher towards $365.
A successful close above the $355 resistance and follow up move above the $360 level could also open the doors for a steady rise towards the $400 resistance level in the coming days.
Fresh Bearish Break in ETH?
If Ethereum fails to clear the $355 resistance, there are chances of a fresh decline. An initial support on the downside is near the triangle lower trend line at $350.
The 100 hourly simple moving average is also near the $350 level. A downside break below the $350 support and the 100 hourly simple moving average may perhaps clear the path for a fresh decline towards the $335 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.
Major Support Level – $350
Major Resistance Level – $355
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
