Ethereum Likely Gearing For Lift-Off $400: Recovery Isn’t Over Yet

Aayush Jindal

1 year ago

2 mins read

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Ethereum recovered above the $350 resistance zone against the US Dollar. ETH price tested the $375 zone and it is currently correcting lower towards the $350 support.

Ethereum is currently correcting lower from the $370 and $375 resistance levels.
The price is now approaching the 100 hourly simple moving average and the $350 support.
There is a declining channel or a bearish flag forming with resistance near $364 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $350 support level to start a fresh increase to $400 in the near term.

Ethereum Price Approaching Strong Support

Yesterday, we saw a strong increase in Ethereum above the $350 resistance level. ETH price even broke the $360 resistance zone and there was a close above the 100 hourly simple moving average.

The price traded to a new weekly high at $377 and it is currently correcting lower. Ether is trading below the $370 and $368 levels. There was a break below the 23.6% Fib retracement level of the upward move from the $325 swing low to $377 high.

The price is now approaching the 100 hourly simple moving average and the $350 support. There is also a declining channel or a bearish flag forming with resistance near $364 on the hourly chart of ETH/USD.

Ethereum price trades below $370. Source: TradingView.com

The channel support is near the 50% Fib retracement level of the upward move from the $325 swing low to $377 high. More importantly, the previous resistance near the $350 and $355 levels could provide strong support in the near term.

On the upside, the price is facing a short-term resistance near the channel resistance at $365. A successful close above the $365 resistance may perhaps open the doors for more gains above the $370 level. The next major resistance is near the $378 and $380 levels, above which the price is likely to rise steadily towards the $400 resistance zone.

Bearish Break in ETH?

If Ethereum fails to clear the $365 resistance or the $370 level, there is a risk of a downside break. The main support on the downside is near the $350 level.

A daily close below the $350 support level is likely to start a fresh decline. In the stated case, the bears might aim a retest of the $325 swing low.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently just above the 40 level.

Major Support Level – $350

Major Resistance Level – $365

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.

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