Decision Time for Ethereum: Technicals Suggest a Crucial Breakout Pattern
Ethereum is slowly moving into a positive zone above the $350 resistance against the US Dollar. ETH price must break the $362 and $365 resistance levels to continue higher.
- Ethereum traded above the $350 and $355 resistance levels to move into a positive zone.
- The price seems to be forming a support base above $350 and the 100 hourly simple moving average.
- There is a key ascending channel forming with support near $352 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher if it clears the $362 and $365 resistance levels.
Ethereum Price is Showing Positive Signs
After surpassing the $335 hurdle, Ethereum extended its rise above the $350 resistance. ETH price even settled above the $350 resistance zone and the 100 hourly simple moving average to move into a positive zone.
There was a spike above the $360 level, but it seems like ether is facing hurdles near $362 and $365. Recently, there was a downside correction, but the price remained stable near $350. A swing low is formed near $348 and the recent high was near $360.
An initial support on the downside is near the $358 level or the 23.6% Fib retracement level of the recent rise from the $348 swing low to $360 high. It seems like there is a key ascending channel forming with support near $352 on the hourly chart of ETH/USD.
Ethereum price settles above $350. Source: TradingView.com
The channel support is close to the 50% Fib retracement level of the recent rise from the $348 swing low to $360 high. A breakout pattern seems to be forming with resistance near $362.
A clear break above the $362 and $365 resistance levels may perhaps open the doors for a larger increase. The next key resistance is near the $375 level, above which the bulls are likely to aim a test of the $400 resistance.
Downside Break in ETH?
If Ethereum fails to clear the $362 and $365 resistance levels, there is a risk of a downside break. The first key support is near the channel support and $352.
The main support is forming near the $350 level and the 100 hourly SMA. A successful close below the $350 support zone could open the doors for a larger decline towards the $335 support in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well above the 50 level, with a positive angle.
Major Support Level – $350
Major Resistance Level – $362
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Aayush Jindal, @KhareemSudlow