TA: Ethereum Holds Strong at $440, Why The Bulls Remain In Driver’s Seat
Ethereum corrected lower below $440, but it remained stable above $435 against the US Dollar. ETH price is likely to gain momentum if it clears the $460 resistance zone.
- Ethereum is holding the ground above the $440 and $435 support levels.
- The price is showing positive signs above the $440 support and the 100 hourly simple moving average.
- There is a key connecting bullish trend line forming with support near $440 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise steadily towards $460 or $475 as long as it is above the trend line support.
Ethereum Price is Showing Positive Signs
After forming yet another top near the $460 resistance, Ethereum started a downside correction. ETH price traded below the $450 support level. It even spiked below the $440 support, but the bulls managed to protect the $435 zone.
A swing low is formed near $435 and the price is currently rising. There was a break above the $440 and $442 levels. Ether price even climbed above the 50% Fib retracement level of the recent decline from the $459 swing high to $435 swing low.
Moreover, there is a key connecting bullish trend line forming with support near $440 on the hourly chart of ETH/USD. Ethereum price is now facing hurdles near the $450 level, but it is well above the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The 61.8% Fib retracement level of the recent decline from the $459 swing high to $435 swing low is also acting as a hurdle. A clear break above the $450 resistance could easily take the price towards the $460 resistance. Any further gains might call for a move towards the $470 and $475 levels.
Downsides Limited in ETH?
On the downside, the trend line support at $440 and the 100 hourly SMA are important supports for the bulls. If they fail to keep ethereum price above the 100 hourly SMA, there is a risk of more losses below the $435 low.
The next major support is near the $425 zone. Any further losses may perhaps open the gates for a drop towards the main $400 support level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is rising and it is above the 50 level.
Major Support Level – $440
Major Resistance Level – $460
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Aayush Jindal, @KhareemSudlow