Ethereum’s ether started a fresh increase above $385, following bitcoin’s rise above $13,800 against the US Dollar. ETH price is likely to continue higher towards $420 and $425.
- Ethereum is up over 5% and it broke the key $400 resistance level.
- The price is now trading above $404 and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $385 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher once it clears the $408 and $410 levels.
Ethereum Price is Gaining Bullish Momentum
After finding a strong support near $372, Ethereum started a fresh increase. Bitcoin price rallied above $13,800 and $14,000, resulting in a decent increase in ETH above the $388 and $395 resistance levels.
The recent rally was initiated after there was a break above a major contracting triangle with resistance near $385 on the hourly chart of ETH/USD. Ether price even cleared the $400 resistance level and settled well above the 100 hourly simple moving average.
A new monthly high is formed near $408 and the price is currently consolidating gains. An initial support is near the $402 and $401 levels. The 23.6% Fib retracement level of the recent increase from the $379 swing low to $408 high is also near the $401 level.
Source: ETHUSD on TradingView.com
It seems like there is a key contracting triangle forming with resistance near $407 on the same chart. A clear break above the triangle resistance and $208 could open the doors for more upsides.
The next immediate resistance is near the $412 level, above which the bulls are likely to aim a larger rally towards the $420 and $425 resistance levels in the coming sessions.
Downside Limited in ETH?
If Ethereum fails to clear the $407 and $408 resistance levels, it could correct lower. An initial support on the downside is near the $400 level and the triangle lower trend line.
If there is a downside break below the triangle support at $401 and $400, ether price might decline towards the $395 support. It is close to the 50% Fib retracement level of the recent increase from the $379 swing low to $408 high.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $400
Major Resistance Level – $408