Ethereum surged over 10% and it settled nicely above the $400 resistance against the US Dollar. ETH price is consolidating gains and it seems like it could rally further above $420.
- Ethereum gained bullish momentum above the $400 and $410 resistance levels.
- The price traded to a new monthly high at $422 and settled above the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $411 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to surge above $420 unless it starts an extended correction towards $400.
Ethereum Price Holding Uptrend Support
Ethereum gained a strong bullish momentum above the $400 resistance level. ETH price even broke the $410 resistance level and settled well above the 100 hourly simple moving average.
The upward move such that the price even spiked above the $420 resistance. A new monthly high was formed near the $422 level before the price started a downside correction. Ether corrected lower below the $415 level, plus the 23.6% Fib retracement level of the recent surge from the $392 swing low to $422 high.
However, the price is trading nicely above the $410 support level. There is also a major bullish trend line forming with support near $411 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
If there is a break below the trend line support, the price could correct lower towards the $406 support. It is close to the 50% Fib retracement level of the recent surge from the $392 swing low to $422 high.
Conversely, ether price is likely to continue higher above the $415 and $420 resistance levels. A clear break above the $422 high might open the doors for a steady increase towards the $430 and $435 levels in the near term.
Dips Likely Supported in ETH
If Ethereum fails to clear the $420 resistance level, it might continue to correct lower. The first major support is near the trend line and $410.
A downside break below the $410 support level could lead the price towards the $405-406 support zone. The main support is now forming near the $400 level (the recent breakout zone).
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still well above the 50 level.
Major Support Level – $410
Major Resistance Level – $420
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