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Simple Technical Pattern Could Send ETH Above $350

09/09/2020

A simple technical pattern could be the reason why ETH will shoot above $350 while it is still struggling to gain momentum above $340 and $350 so let’s see more in our ETH news today.

The ETH price could start a strong increase if it manages to clear the $100 hourly SMA. It is now trading above $320 and below the 100 hourly simple moving average. There’s also a key declining channel forming with the resistance near $340 on the hourly charts. The pair could clear the 100 SMA and the $350 level if it surpasses the channel resistance.

Ethereum broke the $340 and the $350 resistance level but the ETH price is having a hard time gaining momentum above $355 and stayed below the 100 hourly simple moving average which oly invalidated the possible bullish breakout. The ETH price started a fresh decline below the $340 level and it even broke the 50% fib retracement level from the upward move from $323 low to the $355 high. There was also a spike below the $335 support level according to the charts.

eth price
Ethereum price trades below $340. Source TradingView.com

It is now trading close to the 76% fib retracement level from the upward move of the $323 low to the $355 high. ETH seems to be facing a strong resistance near this level so there’s a key declining channel as well forming with resistance close to the $430 level on the hourly charts for ETH/USD. If there’s a break above the channel resistance, the bulls could try and clear this level at $350. If they manage to do so, there are chances of a steady rise above $355 and $360 in the near term. The next major resistance is close to the $370 level where the price could move into a positive zone from thereon. ETH could even revisit the $400 hurdle.

eth daily price
Ethereum’s ETH 24-hour Price Chart (Source: Coingecko)

The simple technical pattern shows that ETH could struggle near the $350 level and the 100 hourly SMA but that there’s also a risk of bearish break. The initial support of the downside level is close to the $325 level. The next major support is close to the $315 and $310 level. The daily close below the $310 level could start another sharp decline and the price could even drop below the $300 support.