TA: Ethereum Recovers, Close Above $392 Could Spark A Strong Rally

Aayush Jindal

1 year ago

2 mins read

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Ethereum’s ether stayed above the $372 support and recovered nicely against the US Dollar. ETH price is now struggling to clear $392, above which it could rally significantly.

Ethereum started a decent recovery wave after it found support near the $372 level.
The price is now trading above $382 and testing the 100 hourly simple moving average.
There was a break above a key connecting bearish trend line with resistance near $384 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must settle above $392 to initiate a strong rally in the coming sessions.

Ethereum Price is Attempting Upside Break

After diving towards the $372 support, Ethereum held the ground and started a decent upward move. ETH price broke the $380 resistance level to move into a short-term bullish zone.

The upward move was such that ether price surpassed the 23.6% Fib retracement level of the downward move from the $404 swing high to $371 swing low. Moreover, there was a break above a key connecting bearish trend line with resistance near $384 on the hourly chart of ETH/USD.

The price is now facing hurdles near $388 and $390. The 50% Fib retracement level of the downward move from the $404 swing high to $371 swing low is also acting as a resistance. It is now trading above $382 and testing the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

To start a strong rally, ether must clear the $390 resistance and then settle above $392. A successful close above the $392 resistance may perhaps initiate a larger upward move (similar to bitcoin if it clears $14,000) towards the $405 and $412 levels. Any further gains could lead the price towards the $420 resistance level.

Downside Limited in ETH?

If Ethereum fails to clear the $390 and $392 resistance levels, it could react to the downside. An initial support on the downside is near the $382 level.

The first major support is near the $380 level. A clear break below $380 could start another decline towards the main $372 support level. Any more losses is likely to push ether towards the $365 level in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum 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 – $392

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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