Ethereum Price at Make-or-Break Levels, Rally Remains Attractive To Sellers

Ethereum declined below the $1,350 support against the US Dollar. ETH could start a steady increase if there is a clear above the $1,350 resistance.

• Ethereum started a fresh decline after it failed to clear the $1,385 resistance zone.
• The price is now trading below $1,350 and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $1,320 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must stay above the $1,300 level to avoid a major decline in the near term.

Ethereum Price Holds Key Support

Ethereum failed to gain pace above the $1,385 and $1,400 resistance levels. ETH topped near the $1,385 level and started a fresh decline.

There was a move below the $1,360 and $1,350 support levels. Ether price even settled below the $1,350 and the 100 hourly simple moving average. A low was formed near $1,305 and the price is now slowly moving higher. There was am move above the $1,310 and $1,320 levels.

There was a break above a major bearish trend line with resistance near $1,320 on the hourly chart of ETH/USD. The price even climbed above the 23.6% Fib retracement level of the downward move from the $1,385 high to $1,305 low.

However, the price faced sellers near the $1,330 level and the 100 hourly simple moving average. On the upside, the price is facing hurdles near $1,325 and $1,330. The first major resistance is seen near the $1,350 level.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the downward move from the $1,385 high to $1,305 low is also near the $1,350 level. A clear break above $1,350 could send the price further higher. The next major resistance could be near the $1,385 level, above which the price could gain bullish momentum.

Downside Break in ETH?

If ethereum fails to climb above the $1,350 resistance, it could continue to move down. An initial support on the downside is near the $1,315 level.

The next major support is near the $1,305 level. A downside break below the $1,305 level might send the price towards the $1,250 support. Any more losses might send the price towards $1,220.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now close to the 50 level.

Major Support Level – $1,305

Major Resistance Level – $1,350

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