Ethereum Just Saw A Key Technical Breakout: Big Reaction From Bulls Imminent

Aayush Jindal

Last Updated: June 11, 2024 2:15 pm

2 mins read

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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.

Technical Indicators

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

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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