Ethereum Just Saw A Key Technical Breakout: Big Reaction From Bulls Imminent
Ethereum is up over 2% and it broke the main $400 resistance against the US Dollar. ETH price is likely to accelerate higher once it clears the $408 resistance zone.
- ETH price is back in a positive zone above the $400 and $402 resistance levels against the US Dollar.
- There is a strong support forming near $395 and the 100 simple moving average (4-hours).
- There was a break above a crucial bearish trend line with resistance near $395 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher once it clears the $408 resistance level in the near term.
Ethereum Price Turns Green
After a strong downside correction, Ethereum found support near the $370 level against the US Dollar. ETH price made two attempts to decline below the $370 support, but the bears failed to gain momentum.
As a result, ether started a strong increase and broke the $385 resistance. It opened the doors for more gains above the $395 pivot and resistance level. The price climbed above the 50% Fib retracement level of the downward move from the $411 high to $370 low.
More importantly, there was a break above a crucial bearish trend line with resistance near $395 on the 4-hours chart of ETH/USD. The pair is now trading nicely above the $400 resistance level, the 100 simple moving average (4-hours), and the 76.4% Fib retracement level of the downward move from the $411 high to $370 low.
Ethereum price trades above $400. Source: TradingView.com
An immediate resistance is near the $408 level (the last key breakdown zone). A successful close above the $408 level may perhaps open the doors for a larger increase in the near term.
The next major resistance for ether could be near the $420 level or the 1.236 Fib extension level of the downward move from the $411 high to $370 low. Any further gains could lead the price towards the $450 resistance.
Downsides Limited in Ether (ETH)?
If Ethereum fails to clear the $408 resistance zone, it might start a downside correction. An initial support is near the $395 level and the 100 simple moving average (4-hours).
The next major support is near the $390 level, below which the bears are likely to target a retest of the $370 support region in the near term.
4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
4 hours RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $395
Major Resistance Level – $408
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