Tuesday, September 1, 2020

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



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


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 MACDThe MACD for ETH/USD is currently gaining momentum in the bullish zone.


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


Major Support Level – $438


Major Resistance Level – $450





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