Ethereum is Primed For a Rally And Only 1 Thing is Holding it Back
Ethereum is recovering nicely above the $350 resistance zone against the US Dollar. ETH price is likely to accelerate higher if it settles above $362 and the 100 SMA (H4).
- ETH price started a decent recovery wave from the $310-$315 support zone against the US Dollar.
- The price is now trading above the $350 resistance and near the 100 simple moving average (4-hours).
- There is a key rising channel forming with support near $352 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher if it settles above $362 and the 100 SMA (H4).
Ethereum Price Gaining Bullish Momentum
This past week, Ethereum remained stable above the $300 support zone against the US Dollar. ETH price traded as low as $313 and recently started a steady recovery wave above the $330 resistance.
Ether price was able to recover nicely above the $335 and $340 levels. The price gained pace after there was a break above a connecting bearish trend line with resistance near the $430 level on the 4-hours chart of ETH/USD.
There was also a break above the 50% Fib retracement level of the downward move from the $394 high to $313 swing low. Ether is now trading above the $350 resistance and the near 100 simple moving average (4-hours). However, it is facing a strong resistance near the $362 level.
Ethereum price trades above $350. Source: TradingView.com
It seems like the 61.8% Fib retracement level of the downward move from the $394 high to $313 swing low is acting as a strong resistance. There is also a key rising channel forming with support near $352 on the same chart.
A clear break above the channel resistance, 100 SMA (h4), and the $362 zone could open the doors for a sharp increase. The next major hurdle is near the $375 level, above which the price might rally to $400.
Downsides Supported in Ether (ETH)?
If Ethereum fails to clear the $362 resistance zone, it might start a downside correction. An initial support is near the channel support at $352.
If there is a downside break below the channel support at $352, there is a risk of a drop towards the $345 support zone. Any further losses might negate the current bullish wave and ether could revisit the $315 level.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
4 hours RSI – The RSI for ETH/USD is well above the 50 level.
Major Support Level – $345
Major Resistance Level – $362
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
