Ethereum faced a strong rejection above $380 against the US Dollar. ETH price is now at a risk of a sharp decline if it breaks the key $365 support in the near term.

• Ethereum struggled to gain momentum above the $380 and $382 levels.
• The price declined sharply below the 100 hourly simple moving average, and retested $365.
• There is a key bearish trend line forming with resistance near $378 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could decline heavily if there is a clear break below the $365 support level.

Ethereum Price Showing Bearish Signs

Ethereum started a steady decline from well above the $385 level. ETH price faced a strong resistance near the $380 and $382 levels, resulting in a drop below the $375 support.

Ether price even broke the $370 support and settled well below the 100 hourly simple moving average. It retested the key $365 support level and it is currently consolidating losses. An initial resistance is near the $372 level.

The first major resistance is near the $374 level or the 50% Fib retracement level of the recent decline from the $382 high to $365 low. More importantly, there is a key bearish trend line forming with resistance near $378 on the hourly chart of ETH/USD.

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The trend line is close to the 100 hourly simple moving average and the 76.4% Fib retracement level of the recent decline from the $382 high to $365 low. If there is no recovery above $374 and $378, there is a risk of a downside break below the $365 support. A proper close below the $365 support may perhaps open the doors for a larger decline. The next major support is near the $355 level.

Fresh Increase in ETH?

If Ethereum stays above the $365 support, it could start a fresh increase. The first key resistance is near the $374 level, but the main hurdle is now forming near $378. A clear break above the trend line resistance, $378, and the 100 hourly simple moving average could open the doors for a steady rise towards the $388 and $392 levels in the coming sessions. Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 50 level.

Major Support Level – $365 Major Resistance Level – $374