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ETH Recovered 8% But It Could Resume Its Decline And Here’s Why

09/07/2020

ETH recovered 8% and found support near the $310 level, making an upside correction against the US dollar. The ETH price recovered but it is facing so many hurdles that the asset could continue its decline as we are reading more in today’s Ethereum news.

ETH recovered 8% and broke the $335 and $340 resistance level. The price is well above the $370 resistance and the 100 hourly simple moving average. There was a break above the bearish trend line with a resistance of $350 on the hourly charts for the pair and it could resume its decline if it fails to overcome the main $370 resistance zone.

eth price
Ethereum price trades below $360. Source TradingView.com

After dropping below the $350 support, Ethereum extended its decline below the $335 support and the price even broke the $320 support while settling below the 100 hourly simple moving average. The new monthly low is formed close to the $310 and ETH even started an upside correction with a break above the $325 and $335 resistance zone. There was a break above the key bearish trend line as well above the $350 level on the hourly charts of the pair.

The pair surpassed the main $350 resistance but had a hard time surpassing the $360 level. The new high is formed close to the $360 level and ETH is now declining below $350. It even broke the 23.6% fib retracement level of the recent upward move from the $310 low to the $360 swing high. The initial support on the downside is close to the $340 level. The first major support gets closer to the $335 level and it is close to the 50% fib retracement level from the upward movement of $310 low to the $360 swing high.

eth chart
ETH Weekly Price (Source: Coingecko)

To start a new increase, the price has to break this level and if it manages to do so, it could even hit the $400 barrier. If ETH fails to correct higher above $360 and $370 resistance levels, it could continue lower with initial support on the downside getting close to the $335 level. The downside break below the $340 and $335 could start a new decline with support close to the $322 zone below which there is a risk of another breakdown below the $310 support zone. The hourly RSI for the pair is still well below the 50 barriers while the major support level is getting close to the $335.