Ethereum recovered nicely above the $380 and $390 levels against the US Dollar. ETH price must surpass the $400 barrier for another leg higher in the near term.
- Ethereum is up over 5% and it broke the key $380 and $390 resistance levels.
- The price traded close to the $398 level and it settled above the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $390 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct a few points, but the previous resistance near $388 might provide support.
Ethereum Price Rallies Over 5%
After diving towards the $365 support zone, Ethereum found a strong buying interest against the US Dollar. A swing low was formed near $364 before the price started a fresh increase.
There was a break above the $375 and $380 resistance levels. There was also a break above a major bearish trend line with resistance near $390 on the hourly chart of ETH/USD. The pair climbed above the $390 resistance and settled well above the 100 hourly simple moving average.
A new intraday high is formed near $398 and the price is currently correcting lower. There was a slight decline below the $395 level. The price is now trading near the broken trend line and the $392 zone.
Ethereum price trades above $390. Source: TradingView.com
The 23.6% Fib retracement level of the recent upward move from the $364 swing low to $398 high is also near $390 level. The first major support is near the $388 level and the 100 hourly simple moving average.
If ether price stays above the $388 and $390 support levels, it could make another attempt to clear the $398 resistance. The main hurdle is still near the $400 level, above which the price is likely to rise towards the $412 and $420 levels in the coming sessions.
Dips Likely To Be Supported in ETH
Ethereum is likely to find a decent buying interest near the $390 and $388 levels. The main support is now forming near the $380 level.
The 50% Fib retracement level of the recent upward move from the $364 swing low to $398 high is also near the $380 level to provide a strong support in the short-term.
Hourly MACD – The MACD for ETH/USD is slowly gaining in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $380
Major Resistance Level – $398
Author: Aayush Jindal