Critical Level for Ethereum at $ 406, According to Analyst

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Ethereum (ETH) started a sharp decline after failing to stay above the $ 450 support against the US Dollar. But as long as the ETH price is above the $ 406 support zone, it is likely to return, according to popular analyst Aayush Jindal.

Ethereum has fallen more than 10% in the past 24 hours and broke the $ 450 support level on the downside. The price then traded close to the $ 420 support and fell below the 100 hourly simple moving average.

There is a key bearish trend line with resistance near $ 438 on the hourly chart of ETH / USD. The pair looks set to continue its upward movement as long as it is above $ 420 or $ 406 in the near term, analyst Jindal said.

Ethereum Key Support

Ethereum started a downside correction against the US Dollar after trading close to $ 500. ETH price broke the $ 460 support zone to move into a short term bearish zone.

However, the bulls lost control and the ETH price dropped below the $ 450 support level. The price dropped over 10% and even broke the $ 435 support. ETH then traded close to the $ 420 support and fell below the 100 hourly simple moving average. ETH was trading at $ 416 at the time of writing.

Bulls are currently struggling to reach above $ 435 and $ 440. There is a key bearish trend line with resistance near $ 438 on the hourly chart of ETH / USD.

The next key resistance is near the $ 455 level. The downside is that the price is likely to continue to offer good near the $ 420 level. The next big support is near the $ 406 level where Ethereum could move into the bearish zone.

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Is There An Increase in ETH?

If Ethereum stays above the $ 420 support zone, it could initiate a new increase above $ 438 and $ 440. A successful break above $ 440 could increase the chances of breaking above $ 450.

In the case mentioned, the bulls must gain strength above the $ 455 resistance. If they are successful, the price could steadily rise to $ 480 and $ 485.

Technical Indicators

Hourly MACD: The MACD for ETH / USD is slowly returning to the bearish zone.

Hourly RSI: The RSI for ETH / USD is currently well below the 50 level.

Major Support Level: $ 420 (ETH was trading at $ 416 at the time of writing.)

Major Resistance Level: $ 440


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