Ethereum (ETH) started a sharp decline after failing to stay above the $ 450 support against the US Dollar. But as long as the ETH price is above the $ 406 support zone, it is likely to return, according to popular analyst Aayush Jindal.
Ethereum has fallen more than 10% in the past 24 hours and broke the $ 450 support level on the downside. The price then traded close to the $ 420 support and fell below the 100 hourly simple moving average.
There is a key bearish trend line with resistance near $ 438 on the hourly chart of ETH / USD. The pair looks set to continue its upward movement as long as it is above $ 420 or $ 406 in the near term, analyst Jindal said.
Ethereum Key Support
Ethereum started a downside correction against the US Dollar after trading close to $ 500. ETH price broke the $ 460 support zone to move into a short term bearish zone.
However, the bulls lost control and the ETH price dropped below the $ 450 support level. The price dropped over 10% and even broke the $ 435 support. ETH then traded close to the $ 420 support and fell below the 100 hourly simple moving average. ETH was trading at $ 416 at the time of writing.
Bulls are currently struggling to reach above $ 435 and $ 440. There is a key bearish trend line with resistance near $ 438 on the hourly chart of ETH / USD.
The next key resistance is near the $ 455 level. The downside is that the price is likely to continue to offer good near the $ 420 level. The next big support is near the $ 406 level where Ethereum could move into the bearish zone.
Is There An Increase in ETH?
If Ethereum stays above the $ 420 support zone, it could initiate a new increase above $ 438 and $ 440. A successful break above $ 440 could increase the chances of breaking above $ 450.
In the case mentioned, the bulls must gain strength above the $ 455 resistance. If they are successful, the price could steadily rise to $ 480 and $ 485.
Hourly MACD: The MACD for ETH / USD is slowly returning to the bearish zone.
Hourly RSI: The RSI for ETH / USD is currently well below the 50 level.
Major Support Level: $ 420 (ETH was trading at $ 416 at the time of writing.)
Major Resistance Level: $ 440