- Over the past few weeks, the price of Ethereum dropped by almost 9% and it is failing to trade above $400.
- Today, the price of Ethereum broke above the $400 mark before dropping by 3%.
- The technical outlook of ETH is looking strong even though it is in the red zone.
In August 2020, Ethereum failed to claim the $400 level twice. However, ETH/USD is now trading between the support levels of $370 to $380. After surpassing the key support zones of $360 to $365, Ethereum’s behavior shows that it is gearing up to surpass the $400 mark.
Ethereum to surpass the support zone
After gaining the required momentum, ETH found support between $370 and $380 and it has been failing to retain the resistance level. Moreover, many experts predicted that the ETH price might further drop to $340 before it plunges above $400.
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As the momentum slightly shifted from bullish to bearish, ETH became a point of worry. Although, it looked promising and did not fall below the support levels. If Ethereum successfully claims the $410 resistance level, most likely its price will close at $420.
Is rejection ahead for ETH?
Ethereum price will likely decline if falls below the support level of $365. The ETH technical chart shows ETH will gain momentum if it surpasses the $410 and the major support level will be $405 and $400.
If it breaks below the support zone of $370 it might propel ETH to bearish zone with its price noticing further lows. If it manages to stay afloat above the support zone of $380 to $390 ETH will perhaps surge above the $400 barrier.
A bullish rebound will help ETH to reclaim the $410 spot. Given that, Ethereum’s price action has not turned out well, as ETH is in the red zone even after surging by 3%. As said above, if the bulls rebound ETH will correct its price and enter the green zone with its price trading above $400.