Ethereum scaled higher nicely from the $425 support zone versus the US Dollar. ETH price is striving to clear the $460 resistance, and it could revisit $420 in the near term.
- Ethereum is displaying a few bearish signs below the key $460 resistance level.
- Ether’s trading above the $440 support and the 100 hourly simple moving average.
- There is a significant contracting triangle building with support near $450 on the hourly chart of ETH/USD (data feed via Kraken).
- The dynamic duo could decline towards $420 if it fails to stay above $440 and the 100 hourly SMA.
Ethereum is Facing Hurdles
After a quick downside correction, Ethereum gained support near the $425 level. ETH price formed a base above $425 and started afresh increase above the $435 resistance.
Ether obtained pace above the $440 resistance and the 100 hourly simple moving average. There was also a break above the $450 resistance, but the price faced a major barrier near the $460 level. A high is formed near $461, and the price is currently declining.
There was a fracture below the $454 level, plus the price traded below the 23.6% Fib reversal level of the recent wave from the $425 low to $461 high.
It seems like there is a significant contracting triangle developing with support near $450 on the hourly chart of ETH/USD. If ether breaks the triangle support, it could test the $442 support. It is close to the 50% Fib reversal level of the recent wave from the $425 low to $461 high.
The next major support is near the $440 level and the 100 hourly simple moving average, below which there is a risk of a sharp decline towards $425 or even $420 in the coming sessions.
Upsides Limit in ETH?
On the upside, an initial hurdle for Ethereum is near the triangle resistance at $458. The main resistance is near the $460 level, above which the bulls are likely to gain strength.
A successful break above the $460 resistance is likely to open the doors for a move towards the $470 zone. The next major resistance is near the $480 level.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is sliding and approaching the 50 levels.
Major Support Level – $440
Major Resistance Level – $460