Ethereum fell recently, but remained above the key USD 355 support against the US dollar. ETH price is likely to accelerate higher as it looks like a double bottom pattern is forming near USD 355.
- Ethereum declined below the USD 370 support but remained above the USD 355 support.
- The price with the main USD 355 support, but it is below the 100 easy hourly moving average.
- A bound bearish trendline is forming with resistance near USD 370 on the ETH / USD hourly chart (data feed via Kraken).
- The pair must remain above the USD 355 support level to start another rally any time soon.
Ethereum price is likely to be key bottom
In the past three sessions, Ethereum faced an increase in selling pressure below USD 375. The ETH price broke the USD 370 support zone and even fell below the 100 easy hourly moving average.
However, the bulls were able to protect the key USD 355 and USD 350 support levels. A low is forming near USD 355 and the price is currently consolidating losses. It looks like a double bottom pattern is forming with support near USD 350.
On the upside, an initial resistance is near the USD 362 level or the 23.6% Fib retracement level from the recent decline from the USD 384 high to the USD 355 low. ether price is near the USD 370 level.
Ethereum price trades below $370. Source: TradingView.com
A connecting bearish trendline is also forming with resistance near $ 370 on the ETH / USD hourly chart. The trendline coincides with the 100 simple hourly moving average and the 50% Fib retracement level of the recent decline from the $ 384 high to the $ 355 low.
A successful close above the USD 370 resistance could validate the double bottom pattern. In the case mentioned, the price is likely to remain higher towards the USD 390 and USD 400 resistance levels in the near term.
Downside in ETH?
If Ethereum didn’t clear the USD 370 and USD 375 resistance levels, there is a risk of a downside breach. The main support is near the double bottom zone at USD 355 and USD 350.
If there is a downside break below the USD 350 support zone, ether is likely to stay lower. The next big support is near the USD 342 level, below which the price may revisit the USD 330 zone.
MACD per hour – The MACD for ETH / USD is slowly moving in the bullish zone.
RSI per hour – The RSI for ETH / USD is currently just above the 40 level.
Major Support Level – $ 355
Major Resistance Level – $ 370