Decision Time for Ethereum: Technicals Suggest a Crucial Breakout Pattern

Aayush Jindal

1 year ago

2 mins read

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Ethereum is slowly moving into a positive zone above the $350 resistance against the US Dollar. ETH price must break the $362 and $365 resistance levels to continue higher.

Ethereum traded above the $350 and $355 resistance levels to move into a positive zone.
The price seems to be forming a support base above $350 and the 100 hourly simple moving average.
There is a key ascending channel forming with support near $352 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to continue higher if it clears the $362 and $365 resistance levels.

Ethereum Price is Showing Positive Signs

After surpassing the $335 hurdle, Ethereum extended its rise above the $350 resistance. ETH price even settled above the $350 resistance zone and the 100 hourly simple moving average to move into a positive zone.

There was a spike above the $360 level, but it seems like ether is facing hurdles near $362 and $365. Recently, there was a downside correction, but the price remained stable near $350. A swing low is formed near $348 and the recent high was near $360.

An initial support on the downside is near the $358 level or the 23.6% Fib retracement level of the recent rise from the $348 swing low to $360 high. It seems like there is a key ascending channel forming with support near $352 on the hourly chart of ETH/USD.

Ethereum price settles above $350. Source: TradingView.com

The channel support is close to the 50% Fib retracement level of the recent rise from the $348 swing low to $360 high. A breakout pattern seems to be forming with resistance near $362.

A clear break above the $362 and $365 resistance levels may perhaps open the doors for a larger increase. The next key resistance is near the $375 level, above which the bulls are likely to aim a test of the $400 resistance.

Downside Break in ETH?

If Ethereum fails to clear the $362 and $365 resistance levels, there is a risk of a downside break. The first key support is near the channel support and $352.

The main support is forming near the $350 level and the 100 hourly SMA. A successful close below the $350 support zone could open the doors for a larger decline towards the $335 support in the near term.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently well above the 50 level, with a positive angle.

Major Support Level – $350

Major Resistance Level – $362

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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