- Ethereum bulls are struggling to build upon the support at $400 even as the hurdle at $410 stays put.
- A massive bearish cloud hovers over ETH/USD, especially with the formation of a bearish pennant pattern.
Ethereum appears to have found bearing above $400 following a devastating slump from highs close to $450. Tentative support at $430 and $420 failed to rise to the occasion following a BTC-triggered selloff on Wednesday. The largest cryptoasset tanked from levels above $12,200 and extended the free-fall to areas marginally above $11,500. Ether followed closely in Bitcoin’s footsteps, this time plunging slightly under $400.
ETH/USD has already made a shallow recovery above $400. However, the comeback above $400 is limited under $410. The daily chart brings into the picture a bearish pennant pattern that suggests that ETH is not yet done with the levels under $400.
Ethereum currently trading at $409, after sliding below the pennant pattern. Bulls need to work first and send the price above $410 resistance. This would allow them to shift attention back to $420 and $430 levels respectively, in turn, aiding in averting the potential declines that eye $350 on the downside.
For now, ETH seems to be slightly in the hands of the bulls and slightly in the hands of the bears. The RSI has held above the midline, encouraging buyers not to exit the market. On the flip side, the MACD is grinding lower towards the mean line. Moreover, a vivid bearish divergence from the MACD reinforces the bearish grip. It is essential that bulls defend the support as if their lives depend on it.
ETH/USD daily chart
Ethereum confluence levels
Resistance one: $415 – This zone is home to the Fibo 61.8% one-day, Fibo 38.2% one-week, the Bollinger Band 15-minutes upper curve and the SMA ten 4-hour.
Resistance two: $420 – Highlighted by the SMA 200 15-minutes and SMA 50 one-hour.
Resistance three: $428 – Home to the pivot point one-day resistance one, the SMA five one-day and the Fibo 23.6% one-week.
Support one: $407 – As highlighted by the Bollinger Band 15-minutes lower curve, the Fibonacci 38.2% one-day and the previous low 1-hour.
Support two: $402 – The Bollinger Band 4-hour lower curve and the Fibonacci 23.6% one-day.
Support three: $390 – Highlighted by the pivot point one-month resistance one.
