Ethereum has broken through the $405 and $410 resistance levels to begin a new rally, following bitcoin price surge versus the US Dollar. ETH is likely to continue higher towards $450 and $465.
- Ethereum is up over 6%, and it broke the critical $420 resistance level.
- The price is now trading above $425 and the 100 hourly simple moving average.
- There is a central bullish trend line forming with support near $420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but the $420 support zone is likely to protect losses.
Ethereum Price is Following Bitcoin’s Surge
After forming a support base above the $400 level, Ethereum started a strong upward move. ETH price broke the $405 and $410 resistance levels to move into a positive zone and start the recent rally.
The price gained bullish momentum, and it surged above the $420 resistance level. The upward move was such that ether even spiked above $440 and it settled well above the 100 hourly simple moving average. A new monthly high is formed near $442, and the price is currently correcting lower.
Ether is trading below the $435 support, plus it traded below the 23.6% Fib regressment level of the recent rally from the $407 swing low to $442 high. On the downside, there are many supports, starting at $424.
The 50% Fib regressment level of the recent rally from the $407 swing low to $442 high is near $424 to provide support. There is also a central bullish trend line forming with support near $420 on the hourly chart of ETH/USD.
On the flip side, the $435 level is initial resistance. The first major hurdle is near $440, above which the price could quickly test $450. Any further gains could lead the price towards the $465 resistance.
Downside Limited in ETH?
If Ethereum fails to clear the $435 and $440 resistance levels, it could correct lower. The first significant support on the downside is near the $424 level.
The primary breakdown support is forming near the trend line and $420. If ether price breaks the trend line support, it could continue to move down towards the $400 support zone or the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well above the 60 levels.
Major Support Level – $420
Major Resistance Level – $440