Ethereum Price Forecast: ETH/USD respects the descending trendline, can $420 support hold?

Ethereum recently hit a two year high following the sustained breakout above $400. Ether climbed multiple resistance zone to trade the new 2020 high around $446. Unfortunately, the journey to $500 was short-lived with $446 acting as a temporary stopper. Since then, ETH/USD has narrowed down with losses testing support at the 61.8% Fibonacci retracement level taken between the last drop from $446 to a swing low of $365.51.

At the time of writing, Ethereum is dancing at $423 amid the search for support, preferably above $420. The sharp declines dominating the market at the moment come after Ether briefly stepped above $430 but failed to sustain gains towards $440.

The RSI is reflecting the free-fall with a sharp drop towards the oversold. Moreover, the Elliot Wave Oscillator has begun another bearish session. In other words, the path of least resistance is downwards.

For now, the 100 SMA is providing immediate support, only that chances of support holding at $420 are growing slimmer as the bearish momentum heightens. Other key support areas to keep in Monday for both the Asian session and the European sessions on Monday are the 61.8% Fibonacci level (weekend support), $410, $400 (former resistance) and $380.

ETH/USD 1-hour chart