ETH Technical Analysis: Fallout Rally Warns Ether Price Drop Below $1400

Key Technical Points:

Past Performance of ETH

As mentioned in our previous article, the ETH prices failed to exceed the $1650 level and retrace to retest the $1400 mark. In the 4-hour technical chart, the bearish breakout of the consolidation range also breaks the 50 SMA and the $1478 support level. Currently, prices have depreciated by 12.5% within the last 48 hours and approaches the 100 SMA.

Source - Tradingview

ETH Technical Analysis

The sudden spikes in the intraday trading volume supporting the bearish candles in ETH prices indicate a massive supply inflow. Hence, the traders can expect the fallout rally to crack the $1360 support level.

As the Ethereum market value falls under the 50 SMA in the 4-hour chart, 100 SMA takes up the responsibility to cushion the downtrend. However, the increased selling momentum might drive the prices right through the supporting SMA to hit $1300.

The falling trend in the 4-hour RSI slope forms lower lows to crack under the halfway line reflecting an increase in bearish sentiments. Moreover, the 14 SMA continues to push the slope downwards, increasing the likelihood of continuing the correction phase.

Moreover, the MACD and signal lines gain more spread after the recent bearish crossover and cross under the zero line. The growing trend in the bearish histograms adds a point bearish trend continuation theory.

In a nutshell, the technical indicators support the price action analysis and increase the likelihood of a drop to $1300.

Upcoming Trend

If the Ethereum prices fail to sustain above the 100 SMA at the $1360 support level, a drop to 200 SMA at $1265 is feasible.

Conversely, an early bullish reversal from the $1400 level will crash the prices and retest the $1478 fallout.

Resistance Levels: $1478 and $1650

Support Levels: $1360 and $1265