Key Highlights
- There were a few swing moves in ETH price below $400 against the US Dollar.
- There is a connecting bullish trend line with support at $325 forming on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair is currently struggling to break $390-400, and may correct a few points lower.
Ethereum price corrected lower after a nasty ride against the US Dollar and Bitcoin, and now ETH/USD is consolidating below $390-400 resistance.
Ethereum Price Resistance
In yesterday’s analysis, we discussed the chances of ETH price trading above the $350 resistance against the US Dollar. The price did trade higher, broke the $350 level and moved a few points above the $400 handle. A high was formed at $404.35 where sellers took a stand and pushed the price lower. There were a couple of sharp declines in ETH price, but every dip was well protected above $300. Buyers were in control, as they brought the price back up.
The price recently traded as low as $298, but there was no close below the 100 hourly simple moving average. A connecting bullish trend line with support at $325 on the hourly chart of ETH/USD prevented losses. The pair is now back trading higher and testing the $380-390 resistance. There is a chance of a minor correction towards the 23.6% Fib retracement level of the last wave from the $298.05 low to $394.18 high.
Downsides remain supported above $350-360. An intraday pivot can be seen around the 50% Fib retracement level of the last wave from the $298.05 low to $394.18 high at $346. Below $346, the trend line support at $325 might come into play. Overall, the trend is still bullish, and the price may soon move above $390 once the current consolidation is over.
Hourly MACD – The MACD is gaining pace in the bullish slope.
Hourly RSI – The RSI is back above the 50 level.
Major Support Level – $347
Major Resistance Level – $390
Charts courtesy – SimpleFX