- ETH/USD recovered small portion of weekly losses on Saturday.
- $400 aligns as critical resistance for Ethereum in short-term.
After losing 6.7% on Friday, Ethereum (ETH/USD) extended slide on Saturday and touched its lowest level in nine days at $379.50. Following that drop, the pair staged a rebound in the second half of the day and closed with a gain of nearly 2%. However, the pair failed to climb above $400 and started to erase Saturday’s recovery gains. As of writing, the pair was down 1.65% on a daily basis at $389.10.
Ethereum technical outlook
Ethereum closed the second straight day below the 20-day SMA on Saturday and the Relative Strength Index (RSI) on the daily chart is testing 50, suggesting that sellers are looking to remain in control of the price action.
On the downside, $365 (Fibonacci 38.2% retracement of late-July to mid-August uptrend) could be seen as the next important support ahead of $340 (Fibonacci 50% retracement) and $325 (100-day SMA). Resistances, on the other hand, are located at $400 (psychological level/Fibonacci 23.6% retracement), $405 (20-day SMA) and $420 (August 20, 21 high).