TA: Ethereum is Gaining Momentum, But $400 Presents A Significant Challenge

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum surged above the $370 resistance against the US Dollar. ETH price tested the $395 resistance and it is currently correcting lower towards the $380 support zone.

Ethereum gained bullish momentum above the $370, $375 and $380 resistance levels.
The price tested the $395 resistance and it settled nicely above the 100 hourly simple moving average.
There is a key connecting bullish trend line forming with support near $372 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is correcting lower, but the bulls are likely to protect $380 or $375.

Ethereum Price Turns Green

Yesterday, we discussed how Ethereum lacked momentum above $375, but dips likely to be limited. ETH price remained well supported above the $365 level and it started a fresh increase.

The bulls gained strength above the $370, $375 and $380 resistance levels. Ether traded close to the $400 resistance and formed a new monthly high at $395 (similar to bitcoin). It is currently correcting lower below $385, but it is still well above the 100 hourly simple moving average.

There was a break below the 23.6% Fib retracement level of the recent increase from the $265 swing low to $395 high. The first major support on the downside is near the $380 level.

Ethereum price settles above $380. Source: TradingView.com

The 50% Fib retracement level of the recent increase from the $265 swing low to $395 high is also near the $380 level to provide support. More importantly, there is a key connecting bullish trend line forming with support near $372 on the hourly chart of ETH/USD.

On the upside, the $388 level is a short-term resistance. The first major resistance is near the $395 level. The main hurdle for a larger breakout is near $400, above which the price may even aim a new yearly high.

Key Buy Zone in ETH?

Ethereum is likely to find a decent support near the $380 level. The next major support is near the $378 level, below which the price could test the trend line support.

The 100 hourly simple moving average is also near the trend line and $372. A downside break below the trend line support could push the price towards the main $365 support level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is struggling to gain momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently holding the 50 level, with a positive angle.

Major Support Level – $372

Major Resistance Level – $395

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.

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.