Ethereum Close Below $350 Could Spark Larger Degree Correction To $330

Ethereum tested the $370 resistance before correcting lower against the US Dollar. ETH price could start a larger decrease if it fails to stay above $350 and $348.

• Ethereum started a fresh decline after trading to a new weekly high near $370.
• The price is now trading below the $355 support and the 100 hourly simple moving average.
• There was a break below a major ascending channel with support near $355 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to continue lower if it breaks the $350 and $348 support levels.

Ethereum Price is Showing Bearish Signs

Ethereum extended its rise above the $365 resistance, but it failed to clear the $370 level. A new weekly high is formed near $370 and ETH price is currently correcting lower (similar to bitcoin).

There was a break below the $365 and $360 levels to start the current decrease. The bears were able to push ether price below the 50% Fib retracement level of the upward move from the $347 low to $369 high.

More importantly, there was a break below a major ascending channel with support near $355 on the hourly chart of ETH/USD. The pair is now trading below the $355 support and the 100 hourly simple moving average.

Ethereum price settles below $355. Source: TradingView.com

An immediate support is near the $352 level. It is close to the 76.4% Fib retracement level of the upward move from the $347 low to $369 high. The first major support is near the $350 and $348 levels. If ether fails to stay above the $348 support level, there is a risk of a larger degree correction.

The next major support is near the $342 level, below which the bearish might aim a test of the $333 support. It represents the 1.618 Fib extension level of the upward move from the $347 low to $369 high.

Fresh Increase in ETH?

If Ethereum manages to stay above the $352 and $350 support levels, it could attempt a fresh increase. An initial resistance for the bulls could be near $355.

The first key resistance might be $362, above which the bulls are likely to aim a new weekly high above the $369 level. The next major resistance is $375, followed by $388.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently well below the 40 level, with bearish signs.

Major Support Level – $350

Major Resistance Level – $362

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