Ethereum Price Regains Bullish Momentum, But $400 Still A Key Hurdle

Ethereum recovered nicely above the $380 and $390 levels against the US Dollar. ETH price must surpass the $400 barrier for another leg higher in the near term.

• Ethereum is up over 5% and it broke the key $380 and $390 resistance levels.
• The price traded close to the $398 level and it settled above the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $390 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could correct a few points, but the previous resistance near $388 might provide support.

Ethereum Price Rallies Over 5%

After diving towards the $365 support zone, Ethereum found a strong buying interest against the US Dollar. A swing low was formed near $364 before the price started a fresh increase.

There was a break above the $375 and $380 resistance levels. There was also a break above a major bearish trend line with resistance near $390 on the hourly chart of ETH/USD. The pair climbed above the $390 resistance and settled well above the 100 hourly simple moving average.

A new intraday high is formed near $398 and the price is currently correcting lower. There was a slight decline below the $395 level. The price is now trading near the broken trend line and the $392 zone.

Ethereum price trades above $390. Source: TradingView.com

The 23.6% Fib retracement level of the recent upward move from the $364 swing low to $398 high is also near $390 level. The first major support is near the $388 level and the 100 hourly simple moving average.

If ether price stays above the $388 and $390 support levels, it could make another attempt to clear the $398 resistance. The main hurdle is still near the $400 level, above which the price is likely to rise towards the $412 and $420 levels in the coming sessions.

Dips Likely To Be Supported in ETH

Ethereum is likely to find a decent buying interest near the $390 and $388 levels. The main support is now forming near the $380 level.

The 50% Fib retracement level of the recent upward move from the $364 swing low to $398 high is also near the $380 level to provide a strong support in the short-term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 50 level.

Major Support Level – $380

Major Resistance Level – $398