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Key Reasons Why Ethereum Might Not Stay Below $400 For Too Long

Aayush Jindal
Aayush Jindal
4 years ago
2 mins read

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Ethereum is holding a crucial support zone near the $380 level against the US Dollar. ETH price seems to be basing for the next move and it might surge above $400 in the near term.

  • Ethereum is currently consolidating above the $380 and $385 support levels.
  • The price is likely to face hurdles near $395, $400, and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with resistance near $395 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase if it clears the $395 and $400 resistance levels.

Ethereum Price Approaching Next Break

Ethereum traded as low as $379 and recently started correcting losses against the US Dollar. ETH recovered above $385 and it seems like the price is forming a decent support base above $380.

There was a break above the $390 level, plus the 23.6% Fib retracement level of the downward move from the $20 swing high to $379 low. Moreover, ether price was able to climb above a key bearish trend line with resistance near $390 on the hourly chart.

The price is currently facing a strong resistance near the $395 level. There is also a key contracting triangle forming with resistance near $395 on the same chart of ETH/USD. The next key resistance is near the $400 level and the 100 hourly simple moving average.

Ethereum Price

Ethereum price trades above $390. Source: TradingView.com

The 50% Fib retracement level of the downward move from the $20 swing high to $379 low is also near $400. If ether surpasses the $395 and $400 resistance levels, it could start a steady rise.

A successful close above the $400 resistance level may perhaps lead the price towards the $420 resistance zone in the coming sessions.

Another Rejection for ETH?

If Ethereum fails to break the $395 and $400 resistance levels, it could decline again. An initial support is near the $390 level. The first major support could be near the triangle lower trend line at $388.

A downside break below the triangle support might push the price further lower towards $385. To move further into a bearish zone, the bears must push the price below the range support at $380.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.

Major Support Level – $385

Major Resistance Level – $400

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Aayush Jindal
Aayush Jindal

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.

Read more

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.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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