Ethereum price tumbled and broke the $420.00 and $400.00 levels against the US Dollar. ETH/USD is correcting higher, but is this a real recovery?
- Ethereum price declined heavily and many important supports including $420.00 against the US Dollar.
- There are two connecting bearish trend lines in place with resistance at $422.00 on the 2-hours chart of ETH/USD.
- The pair must clear the $422.00, $423.75 and $432.50 resistances to recover further.
Ethereum Price Weekly Analysis
Ethereum price came under a lot of bearish pressure this week and declined below major supports like $440.00, $420.00 and even $400.00. ETH/USD traded as low as $395.44 and it is currently correcting higher.
Looking at the 2-hours chart, the price started a major decline from the $470.00 swing high. It broke an important bullish trend line at $461.00 to move into a bearish zone. The pair declined sharply and settled below $440.00 plus 21 simple moving average (2-hours).
A low was formed at $395.44 before the price started an upward correction. The pair recovered above the $412.00 level and the 23.6% Fib retracement level of the last decline from the $459.56 high to $395.44 low.
The price also climbed above $410.00 and the 21 simple moving average (2-hours). However, there are many hurdles on the upside for buyers near the $422.00, $423.75 and $432.50 levels.
More importantly, there are two connecting bearish trend lines in place with resistance at $422.00 on the 2-hours chart of ETH/USD. If the pair manages to climb above the $422.00 and $423.75 resistances, the next hurdle is close to the 50% Fib retracement level of the last decline from the $459.56 high to $395.44 low.
A successful close above the $432.00 and $435.00 levels will most likely push the price back in a positive zone. On the other hand, if the price fails to move above $423.00 and $432.00, it could decline back towards the $410.00 level.
The last swing low at $395.44 is a short term support, below which, the price may perhaps trade towards the $380.00 and $365.00 support levels. Overall, ETH price must break the $423.00 and $435.00 resistances. If not, it could resume its decline below $400.00 in the near term.
The market data is provided by TradingView, Coinbase.