TA: Ethereum is Gaining Momentum, But $400 Presents A Significant Challenge
Ethereum surged above the $370 resistance against the US Dollar. ETH price tested the $395 resistance and it is currently correcting lower towards the $380 support zone.
- Ethereum gained bullish momentum above the $370, $375 and $380 resistance levels.
- The price tested the $395 resistance and it settled nicely above the 100 hourly simple moving average.
- There is a key connecting bullish trend line forming with support near $372 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is correcting lower, but the bulls are likely to protect $380 or $375.
Ethereum Price Turns Green
Yesterday, we discussed how Ethereum lacked momentum above $375, but dips likely to be limited. ETH price remained well supported above the $365 level and it started a fresh increase.
The bulls gained strength above the $370, $375 and $380 resistance levels. Ether traded close to the $400 resistance and formed a new monthly high at $395 (similar to bitcoin). It is currently correcting lower below $385, but it is still well above the 100 hourly simple moving average.
There was a break below the 23.6% Fib retracement level of the recent increase from the $265 swing low to $395 high. The first major support on the downside is near the $380 level.
Ethereum price settles above $380. Source: TradingView.com
The 50% Fib retracement level of the recent increase from the $265 swing low to $395 high is also near the $380 level to provide support. More importantly, there is a key connecting bullish trend line forming with support near $372 on the hourly chart of ETH/USD.
On the upside, the $388 level is a short-term resistance. The first major resistance is near the $395 level. The main hurdle for a larger breakout is near $400, above which the price may even aim a new yearly high.
Key Buy Zone in ETH?
Ethereum is likely to find a decent support near the $380 level. The next major support is near the $378 level, below which the price could test the trend line support.
The 100 hourly simple moving average is also near the trend line and $372. A downside break below the trend line support could push the price towards the main $365 support level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently holding the 50 level, with a positive angle.
Major Support Level – $372
Major Resistance Level – $395
OhNoCrypto
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Aayush Jindal, @KhareemSudlow