Ethereum seriously straggling at $400 – Are buyers safe?

Ethereum climbed over 5%, and it even fastened above the $400 resistance versus the US Dollar. ETH price is striving to clear the $400 resistance, but it persists to be well supported.

• Ether began a steady upward move above the $385 and $392 resistance level.
• The price was traded to a fresh monthly high at $402, and it achieved above the 100 hourly simple moving average.
• There is a crucial linking bullish trend line forming with support near $392 on the hourly chart of ETH/USD (data feed via Kraken).
• The dynamic duo could correct a few points, but there are many essential supports at $388 and $385.

Ethereum Price Turns Green

Ethereum supported bitcoin’s rally and started a firm rally above the $380 resistance. ETH price broke the $385 and $392 resistance levels to move further into a positive zone.

The uphill move was such that either price even spiked above the $400 resistance. A new monthly high was formed near $402, and the price is now trading well above the 100 hourly simple moving average.

Following a rejection above the $400 level, there was a sharp downside correction. The price broke the $395 story and the 23.6% Fib retracement level of the recent rally from the $376 swing low to the $402 high. The price even tested the $390 support level.

It appears like there is a vital key connecting bullish trend line forming with support near $392 on the hourly chart of ETH/USD. The next significant support is near the $390 level since it is close to the 50% Fib retracement level of the recent rally from the $376 swing low to the $402 high.

On the upside, the $400 level is a massive resistance for the bulls. The next immediate resistance is near the $402 swing high, above which ether is likely to climb higher towards the $412 level. A clear break above the $412 resistance could open the doors for a test of $420.

Dips Likely Supported in ETH

If Ethereum fails to clear the $400 resistance level, it might continue to correct lower. The first significant support is near the trend line, followed by $390.

A downside break below the $390 support level could lead the price towards the $385 support. The primary support is near the $382 level (the recent breakout zone).

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still well above the 50 levels.

Major Support Level – $390

Major Resistance Level – $400