Ethereum Rallies 5%: Here’s What Could Lead It To $500 Milestone

Aayush Jindal

1 year ago

2 mins read

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Ethereum extended its rally by 5% and it broke the $440 resistance against the US Dollar. ETH price is likely to break the $450 resistance, above which the bulls might aim $500.

Ethereum is gaining momentum above the key $430 and $435 resistance levels.
The price is now trading well above the $430 level the 100 hourly simple moving average.
There is a crucial bullish trend line forming with support near $438 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct a few points, but the bulls seem to be aiming a sharp increase above $450.

Ethereum Price Climbs Towards $450

In the weekly analysis, we discussed the chances of a big reaction from Ethereum bulls above $408 against the US Dollar. ETH price did break the $408 resistance and it even climbed above the $425 resistance level (as discussed in yesterday’s analysis).

Ether price is now up 5% and it even surpassed the $440 resistance. A new multi-week high is formed near $448 and the price is currently consolidating gains.

An initial support is near the $443 level since it is close to the 23.6% Fib retracement level of the recent rally from the $428 swing low to $448 high. There is also a crucial bullish trend line forming with support near $438 on the hourly chart of ETH/USD.

Ethereum price trades above $440. Source: TradingView.com

The trend line coincides with the 50% Fib retracement level of the recent rally from the $428 swing low to $448 high. On the upside, the price is facing hurdles near $448 and $450. A successful close above the $450 resistance could open the doors for another 5% rally.

The next key resistance is likely to be $465 or $470. In the mentioned case, there are chances of a sharp increase towards the $488 and $500 resistance levels in the near term.

Downsides Are Likely To Be Supported in ETH

If Ethereum fails to clear the $450 resistance, it could start a downside correction. The first key support is near the trend line and the $438 level.

A downside break below the trend line support might start an extended downside correction below $435. The next key support for the bulls could be near the $425 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is slowly moving into the overbought zone.

Major Support Level – $438

Major Resistance Level – $450

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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