Ethereum Stuck Below $400: Here’s What Could Trigger A Fresh Rally
Ethereum struggled to continue higher and declined below $400 against the US Dollar. ETH price is consolidating losses and it must surpass $395 for a fresh rally.
- ETH price corrected lower below the $400 and $392 support levels against the US Dollar.
- The price is trading near the $385 zone and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $395 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to rally if it clears the $392, $395 and $396 resistance levels.
Ethereum Price is Facing Key Hurdles
This past week, Ethereum started a downside correction from well above $400 against the US Dollar. ETH price even traded below the $392 support level and the 100 simple moving average (4-hours).
A swing low was formed near $373 and ether price started an upside correction after bitcoin’s sharp increase towards $14,000. There was a break above the $380 and $382 levels. The price even climbed above the 23.6% Fib retracement level of the downward move from the $410 high to $373 low.
However, the price seems to be facing a strong resistance near the $392 level. It is close to the 50% Fib retracement level of the downward move from the $410 high to $373 low.
Source: ETHUSD on TradingView.com
The next major resistance is near the $395 and $396 levels. There is also a major bearish trend line forming with resistance near $395 on the 4-hours chart of ETH/USD. A successful break above the $392, $395 and $396 resistance levels is must to start a fresh rally in the near term.
The next resistance is near the $400 level, above which the bulls are likely to aim a retest of the $420 resistance zone in the coming sessions.
More Downsides in Ether (ETH)?
If Ethereum fails to clear the $392 and $395 resistance levels, it might start a fresh downside correction. An initial support on the downside is near the $382 level.
The main support is forming near the $373 low. Any further losses could lead the price towards the crucial $365 support (a multi-touch zone).
Technical Indicators
4 hours MACD – The MACD for ETH/USD is struggling to gain momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – $382
Major Resistance Level – $395
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Aayush Jindal, @KhareemSudlow