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Ethereum Goes On A Steep Downtrend As Technicals Suggest Breakout

09/06/2020

Ethereum goes on a steep downtrend as the technicals suggest a crucial breakout pattern while the price could continue to move lower if it breaks the $300 support zone as we are reading more in our Ethereum latest news.

Ethereum si down by more than $150 from the previous $490 swing high against the US dollar. Ethereum goes on a steep downtrend as the price is back into the bearish zone below the $400 and the $350 support level against the US dollar. It traded to a new multi-week low at $309 and settled below the 100 simple moving average. With a crucial bearish trend line forming close to $350, the pair will likely go lower if there is a close below the $300 support in the near-term.

eth price
Ethereum price trades below $320. Source TradingView.com

Over the past few sessions, there was a strong drop for the price below the $400 level against the US dollar. The ETH price broke the $350 support level and dragged Bitcoin with it, lower than $10,200. The decline was such that the ETH price broke the $230 support and traded below the $100 simple moving average. ETH traded close to the $300 support with a multi-week low of $309.

The price is now consolidating losses and trading above the $320 level while facing hurdles close to the 23.6% fib retracement level of the downtrend move from 400 swings high to $309 low. The first biggest resistance on the upside is close to the $340 level. There’s a crucial bearish trend line that is forming close to the $340 level on the charts for the ETH/USD pair. The next major resistance is close to the $350 level followed by the 50% fib retracement level of the downward move from $400 high to the $309 low.

ethereum daily chart
ETH 24-hour Chart (Source: Coingecko)

To go into the positive zone, ETH has to climb above the $340 resistance level and gain pace above the $355 resistance zone in the upcoming sessions. If ETH fails to clear the $440 resistance zone it could continue to go down even more. The initial support is close to the $410 level or the $309 low. The next major support is getting close to the $300 level so the daily close below this level could start another drop and the price could dive to the $260 level.

As for the recent ETH news, MetaMask launched its Ethereum wallet for iOS and Android users after one year of beta testing by public users.