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29 September 2023
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Ethereum price analysis: ETH/USD extends slide below $400 following Friday’s sharp drop

  • Ethereum pushed lower after breaking below $400 on Friday.
  • A weekly close below $400 could open the door for further losses. 
  • Critical support seems to have formed near $365.

Ethereum (ETH/USD) closed the first three days of the week in the negative territory and staged a rebound on Thursday. However, the technical correction came to an end on Friday and ETH/USD broke below critical $400 and lost 6.7%. During the first half of the day on Saturday, Ethereum extended its slide to a fresh nine-day low of $379.50 but recovered its losses to turn flat near $389.

Ethereum technical outlook

Ethereum closed the day below the 20-day SMA for the first time in more than a month, suggesting that the near-term outlook is turning bearish. Moreover, ETH/USD broke below $400 (psychological level/Fibonacci 23.6% retracement of later-July to mid-August uptrend). Meanwhile, the RSI indicator on the daily chart continued to push lower and is now testing 50.

On the downside, $365 (Fibonacci 38.2% retracement) aligns as the next support ahead of $340 ((Fibonacci 50% retracement) and $325 (100-day SMA). On the other hand, a decisive move above $400 could cause the near-term outlook to turn bullish. The 20-day SMA at $405 could be seen as the next technical resistance.

ETH/USD chart (daily)

News source

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