Ethereum is gaining momentum above $1,360 against the US dollar. If there is a clear move above the $1,400 resistance zone, ETH may start a new rally.
- Ethereum is showing positive signs above the $1,320 and $1,350 support levels.
- The price is now trading above $1,350 and above the 100 hourly simple moving average.
- There was a break above the main bearish trend line on the hourly ETH/USD chart (data feed via Kraken) with resistance near $1,342.
- If the pair clears the key $1,400 defense zone, it may extend the rally.
The price of Ethereum is high.
Ethereum has managed to form a support base above the $1,260 level. ETH, like bitcoin, has started a steady rise after clearing the $1,300 resistance.
The price cleared the resistance levels of $1,330 and $1,350 to enter the positive zone. Additionally, there was a break above the main bearish trendline with resistance near $1,342 on the hourly chart of ETH/USD. The pair is now trading above the 76.4% Fib retracement level from the $1,419 swing high to the $1,219 low.
The price of Ether is trading above $1,350 and at the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,395 and $1,400 levels.
The next major resistance is near the $1,420 level. A clear break above $1,420 could initiate a nice rally towards the $1,465 level. The drop from the $1,419 swing high to $1,219 low is near the 1.236 Fib extension level.
Source: ETHUSD on TradingView.com
Any further gains would probably open the doors to a move towards the $1,500 resistance, above which the bulls could lift $1,580 in the coming sessions.
Dips Limited in ETH?
If ethereum fails to break above the $1,400 resistance, a downward correction may begin. Initial support on the downside is near $1,350.
The next major support is near the $1,320 level and the 100 hourly simple moving average. A downside risk below the $1,320 level could send the price towards the $1,250 support in the near term. Any further losses could increase the selloff and the price could drop to $1,200.
Technical indicators
Hourly MACD – The MACD for ETH/USD is currently trending in a bullish zone.
Hourly RSI – The ETH/USD RSI is now above the 50 level.
Main support level – $1,320
Main resistance level – $1,400