Recovering 8%, Ethereum Could Resume Its Decline. Here’s Why
ETH received support close to $310 and began a correction against the US Dollar. The price of Ethereum has returned 8%, but faces a number of obstacles close to $360 and $370. ETH has risen above 8% and broken resistance levels of $335 and $340.
The price is still too low to resist the $370 and 100 normal moving average hourly. There was a break above the main bearish trend line with resistance around $350 on the ETH/USD hourly chart. The pair could again resume its downfall if failed to win a major $370 resistance.
New Decline in ETH?
If Ethereum fails to adjust above the $360 and $370 resistance levels, it is likely to remain low. The first main support on the downside is close to the $335 level.
A break below $340 and $335 could cause a new downturn. The next major support is close to the $322 level, below where there is a risk of falling below the $310 support level.
Ethereum Price Facing Obstacles
After declining to $350 support, ETH decline has been extended below to $335 support. The price of Ethereum even broke the $320 support and remained below the simple 100 moving average.
The latest monthly low build is set at around $310 and Ethereum has just started correction same as bitcoin. There was a break above the $325 and $335 resistance levels. Most importantly, there was a break above the main bearish resistance line near the $350 chart on the ETH/USDT hour chart.
The pair exceeded the $350 resistance, but faced challenges near the $360 level (support previously and now greater resistance). The upside was close to $360 and the price of Ethereum is currently down below $350. It has broken the 23.6% Fib recovery rate from the recent upward trend from $310 low to $360 swing high.
The first support on the decline side is close to the $340 level. The first major support is close to the $335 level. It is close to the 50% Fib retracement level of the latest upwards from $310 low to $360 swing high. To start a new increase, the price should break the resistance levels of $360 and $370. A successful close above $370 should have a good go up to $400.
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