TA: Ethereum Could Resume Its Rally Above $385, Key Supports Nearby
Ethereum corrected lower after testing the $395 resistance against the US Dollar. ETH price is currently following the 100 hourly SMA, and it could resume its rally above $385.
- Ethereum is following a nice bullish trend above the $375 and $380 levels.
- The price is trading above the 100 hourly simple moving average, but it facing hurdles near $385.
- There is a major bullish trend line forming with support near $377 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rally if it clears the $385 resistance level, else it could decline sharply below $375.
Ethereum Price Holding Gains
There was an upside extension in Ethereum above the $385 resistance. ETH price even broke the $390 level and settled well above the 100 hourly simple moving average.
It tested the $395 resistance and started a downside correction. There was a break below the $385 support level, but the bulls were able to defend the $375 support level. A low is formed near $374 and ether price is currently rising.
It seems like there is a major bullish trend line forming with support near $377 on the hourly chart of ETH/USD. There was a break above the $380 level, plus the 23.6% Fib retracement level of the recent decline from the $395 high to $374 low.
Source: ETHUSD on TradingView.com
However, the price is facing a strong resistance near the $385 level. The 50% Fib retracement level of the recent decline from the $395 high to $374 low is also near the $385 level. A successful break above the $385 resistance level could increase the chances of more gains above the $388 and $390 levels.
The next major resistance is near the $395 level, above which the bulls are likely to aim a larger upward move above the $400 level.
Dips Supported in ETH?
Ethereum is clearly following a nice uptrend above the 100 hourly simple moving average and the $375 support. If there is a downside break below the trend line support and $375, the price could extend its correction.
The next major support is near the $365 level, where the bulls are likely to take a strong stand in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently close to the 50 level, with a flat bias.
Major Support Level – $375
Major Resistance Level – $385
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow