This Simple Technical Pattern Could Resend Ethereum Above $350

This Simple Technical Pattern Could Resend Ethereum Above $350

Ethereum is struggling to gain momentum above $340 and $350 against the US Dollar. ETH price could start a strong increase if it clears the 100 hourly SMA at $350.

  • Ethereum is facing an uphill task near the $340 and $350 resistance levels.
  • The price is trading in a range above $320 and below the 100 hourly simple moving average.
  • There is a key declining channel forming with resistance near $340 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could clear the 100 hourly SMA and $350 if it surpasses the channel resistance.

Ethereum Price Facing Hurdles

Yesterday, Ethereum broke the $340 and $350 resistance levels. However, ETH price struggled to gain momentum above $355 and stayed well below the 100 hourly simple moving average, invalidating a possible bullish breakout.

Ether price started a fresh decline below the $340 support level. It broke the 50% Fib retracement level of the upward move from the $323 low to $355 high. There was also a spike below the $335 support level.

It is currently trading near the 76.4% Fib retracement level of the upward move from the $323 low to $355 high. Ether seems to be facing a major resistance near the $340 level. There is also a key declining channel forming with resistance near $340 on the hourly chart of ETH/USD.

Ethereum price trades below $340. Source: TradingView.com

If there is a break above the channel resistance, the bulls might attempt to clear the 100 hourly SMA at $350. If they succeed, there are chances of a steady rise above the $355 and $360 levels in the near term.

The next major resistance is near the $370 level, above which the price is likely to move into a positive zone and it could revisit the $400 hurdle.

Bearish Break in ETH?

If Ethereum continues to struggle near $350 and the 100 hourly SMA, there is a risk of a bearish break. An initial support on the downside is near the $325 level.

The next major support is near the $315 and $310 levels. A daily close below the $310 low is likely to spark another sharp decline. In the stated case, the price may even dive below the $300 support level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now just above the 40 level.

Major Support Level – $325

Major Resistance Level – $350

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