Ethereum Price Forming Base – Key Levels That Could Trigger a Breakout

[Ben Graham]

Ethereum price started a fresh decline below the $4,450 zone. ETH is now consolidating and might aim for a fresh increase if it clears $4,380.

• Ethereum is still struggling to recover above the $4,400 zone.
• The price is trading below $4,380 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $4,340 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a recovery wave if it settles above $4,350 and $4,380.

Ethereum Price Faces Hurdles

Ethereum price started a recovery wave after it formed a base above the $4,260 zone, like Bitcoin. ETH price was able to climb above the $4,320 and $4,350 resistance levels before the bears appeared.

The price struggled to clear the $4,385 level. A high was formed at $4,3873 and the price started to decline again. There was a move below the $4,320 support level. The recent low was formed at $4,268 and the price is now consolidating losses above the 23.6% Fib retracement level of the recent decline from the $4,387 swing high to the $4,268 low.

Ethereum price is now trading below $4,350 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $4,340 level. Besides, there is a key bearish trend line forming with resistance at $4,340 on the hourly chart of ETH/USD.

The next key resistance is near the $4,360 level or the 76.4% Fib retracement level of the recent decline from the $4,387 swing high to the $4,268 low. The first major resistance is near the $4,385 level. A clear move above the $4,385 resistance might send the price toward the $4,420 resistance. An upside break above the $4,420 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,500 resistance zone or even $4,550 in the near term.

More Downside In ETH?

If Ethereum fails to clear the $4,340 resistance, it could start a fresh decline. Initial support on the downside is near the $4,265 level. The first major support sits near the $4,220 zone.

A clear move below the $4,220 support might push the price toward the $4,200 support. Any more losses might send the price toward the $4,160 support level in the near term. The next key support sits at $4,120.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now near the 50 zone.

Major Support Level – $4,260

Major Resistance Level – $4,385