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Ethereum extended its rise above the $390 zone and traded close to $400 against the US Dollar. ETH price is currently correcting lower and it is likely to find support near $380.
- Ethereum is trading in a positive zone and it recently broke the $390 resistance.
- The price traded as high as $395 and settled well above the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $378 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to climb higher above $400 as long as it is above the $375 support zone.
Ethereum Price Following Uptrend
In the past few sessions, Ethereum saw a steady increase above the $375 resistance zone. ETH price remained well supported and it managed to climb above the $385 and $390 levels.
There was also a close above the $380 level and the 100 hourly simple moving average. Ether price broke the $390 level and traded as high as $395. It failed to test the $400 resistance and it is currently correcting lower.
It broke the $388 level, and the 50% Fib retracement level of the recent increase from the $374 low to $395 high. On the downside, there is a strong support forming near the $378 and $380 levels. There is also a major bullish trend line forming with support near $378 on the hourly chart of ETH/USD.
Ethereum price trades above $390. Source: TradingView.com
The $380 support zone is also close to the 61.8% Fib retracement level of the recent increase from the $374 low to $395 high. If ether stays above the $378 support and the trend line, it could resume its upward move.
An initial resistance is near the $390 level. The first major resistance is near the $395 level. The main resistance is near the $400 level, above which the price is likely to accelerate higher towards the $420 level.
Downside Break in ETH?
If Ethereum fails to stay above the $378 support zone and the trend line, there is a risk of a downside break. The first major support is near the 100 hourly SMA and $375.
The next major support for the bulls is near the $370 level, below which the bears are likely to gain strength and the price might decline towards the $355 support zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still above the 50 level.
Major Support Level – $378
Major Resistance Level – $390
