Last week, after failing to get back above the 400-dollar mark, Ethereum (ETH/USD) moved lower and today it is testing its key support level, at 353. At the same time, the crypto is now trading below a short-term tentative downside resistance line drawn from the high of September 1st. Although the current price structure is pointing to some more possible declines, in order to get comfortable with that idea, a strong drop below the 353 zone is required. Until then, we will stay somewhat bearish.
As mentioned above, a strong move lower, below the 353 hurdle, may attract more sellers into the arena, as it would also confirm a forthcoming lower low. ETH/USD might then drift to the 340 obstacle, or to the 329 area, marked by the low of September 9th, which could provide a temporary hold-up. That said, if the bears are still feeling comfortable in pushing the price lower, a drop below the 329 hurdle may open the door to the 321 level, which is the current lowest point of September.
The RSI is pointing lower and sits below 50. The MACD is also pointing slightly to the downside, while sitting fractionally above zero, but below its trigger line. The two oscillators are showing increasing downside price momentum, which supports the above-discussed scenario.
Alternatively, if the if the price somehow gets a boost and breaks the aforementioned downside line and also climbs above the 375 barrier, marked by this morning’s high, that may spook the bears from the field for a bit. Ethereum could get picked up by more bulls, who would be more than happy to push it further north. The crypto might then travel to the high of September 18th, a break of which could clear the path towards the 417 and 419 levels. Those levels mark the lows of August 31st and September 2nd respectively.
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