Ethereum began a fresh clean leap above $385, following bitcoin’s climb above $13,800 versus the US Dollar. ETH price is expected to continue hovering towards $420 and $425.
- Ethereum is up over 5%, and it broke the critical $400 resistance level.
- The price is presently trading above $404 and the 100 hourly simple moving average.
- There was a break above a central contracting triangle with resistance near $385 on the hourly chart of ETH/USD (data feed via Kraken).
- The dynamic duo is likely to proceed above once it clears the $408 and $410 levels.
Ethereum Price is Gaining Bullish Momentum
After finding substantial support near $372, Ethereum began a fresh boost. Bitcoin price rallied above $13,800 and $14,000, resulting in a decent rise in ETH above the $388 and $395 resistance levels.
The recent rally was initiated after there was a break above a central contracting triangle with resistance near $385 on the hourly chart of ETH/USD. Ether price even cleared the $400 resistance level and settled well above the 100 hourly simple moving average.
The good news is that a new monthly high is formed near $408, and the price is currently consolidating gains. Primary support is near the $402 and $401 level. The 23.6% Fib reversal level of the recent increase from the $379 swing low to the $408 high is also near the $401 level.
Source: ETHUSD on TradingView.com
It appears like there is a crucial contracting triangle building with resistance near $407 on the same chart. A clear break above the triangle resistance and $208 could open the doors for more upsides.
The next direct resistance is near the $412 level, above which the bulls are likely to aim a more massive rally towards the $420 and $425 resistance levels in the coming sessions.
Downside Limited in ETH?
If Ethereum declines to clear the $407 and $408 resistance levels, it could correct lower. Fundamental support on the downside is near the $400 level and the triangle lower trend line.
If there is a snag break below the triangle support at $401 and $400, either price might decline towards the $395 support. It is close to the 50% Fib declining level of the recent increase from the $379 swing low to the $408 high.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 levels.
Major Support Level – $400
Major Resistance Level – $408