TA: Ethereum Struggles Below $1,350, Why 100 SMA Could Trigger Rally

Ethereum struggled to clear the $1,400 resistance and declined to $1,275 against the US Dollar. ETH price is struggling, but it could recover once there is a clear break above $1,350.

  • Ethereum topped near the $1,375 level before dropping back to $1,275.
  • The price is now trading below the $1,350 pivot level and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $1,345 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase if it clears the $1,350 resistance zone in the near term.

Ethereum Price is Facing Hurdles

After a failed attempt near $1,400, Ethereum started a fresh bearish wave. ETH price topped near the $1,375 level before it declined almost $100. There was a break below the $1,350 support level and the 100 hourly simple moving average.

However, the bulls were able to protect the $1,275 support. A low is formed near $1,274 and the price is currently correcting higher. It is testing the $1,320 resistance level, which is close to the 50% Fib retracement level of the recent decline from the $1,375 high to $1,274 low.

The first major resistance is near the $1,340 and $1,350 levels. There is also a key bearish trend line forming with resistance near $1,345 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the recent decline from the $1,375 high to $1,274 low.

Ethereum Price

Source: ETHUSD on TradingView.com

Moreover, the 100 hourly SMA is also positioned near $1,340 to act as a hurdle. A clear break above the $1,340 and $1,350 resistance levels may possibly open the doors for a larger increase in the coming sessions. In the stated case, there are high chances of a break above the $1,400 resistance level.

Fresh Dip in ETH?

If Ethereum fails to clear the $1,340 zone and the trend line resistance, it could start a fresh decline. An initial support on the downside is near the $1,300 level.

The first major support is near the $1,275 zone. If ether price fails to stay above the $1,275 support, there is a risk of a drop towards the $1,200 support zone.

Technical Indicators

Hourly MACD The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI The RSI for ETH/USD is currently approaching the 50 level.

Major Support Level – $1,275

Major Resistance Level – $1,350



from NewsBTC https://www.newsbtc.com/analysis/eth/ethereum-struggles-below-1350/

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