Ethereum Smashes Heavy Resistance: Next Bullish Levels Traders Should Watch

Aayush Jindal

1 year ago

2 mins read

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Ethereum gained bullish momentum above the $406 resistance against the US Dollar. ETH price is up over 5% and it seems like the bulls are aiming a test of $445 in the coming days.

Ethereum climbed higher steadily and broke the $400 and $406 resistance levels.
The price is now trading nicely above the $420 level the 100 hourly simple moving average.
There is a short-term breakout pattern forming with resistance near $430 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 test of $445 or $450.

Ethereum Price Gaining Bullish Momentum

In the weekly analysis, we discussed the chances of more upsides in Ethereum if it clears $408 against the US Dollar. ETH price did gain bullish momentum above the $406 and $408 resistance levels.

It climbed over 5% and surpassed the $420 resistance level. A high is formed near $430 and ether is now trading well above the 100 hourly simple moving average. It is currently consolidating gains below the $430 level.

There is a short-term breakout pattern forming with resistance near $430 on the hourly chart of ETH/USD. The triangle support is near the 23.6% Fib retracement level of the recent upward move from the $403 swing low to $430 high.

Ethereum price trades above $425. Source: TradingView.com

If there is a downside break below the triangle support, ether price could test the $420 or $416 support. The 50% Fib retracement level of the recent upward move from the $403 swing low to $430 high is also near $416.

On the upside, the bulls are facing hurdles near the $428 and $430 levels. A successful close above the $430 resistance could open the doors for another 3%-5% rise. The next key resistance is likely to be $445 or $450.

Downsides Are Likely To Be Limited in ETH

If Ethereum starts a steady downside correction, the $420 support or the $416 technical level might protect more downsides in the near term.

If there are more losses, the next major support is near the $406 level (the recent breakout zone), where the bulls are likely to take a stand. The main support and a pivot zone is near $400.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 60 level.

Major Support Level – $420

Major Resistance Level – $430

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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