Ethereum gained momentum and broken the $1320 resistance to the US dollar. ETH shows positive signs and could surge higher than the $1.400 resistance.
- Ethereum began to rise steadily above the $1320 and $1330 levels.
- The current price trades above $1,300 as well as the simple 100-hour moving average.
- A major bullish trend line is emerging with support at $1,320 (data feed via Kraken).
- Bitcoin could rise if the price of gold remains at or above $1,300.
Ethereum price gains strength
Ethereum traded well above the $1.265 level, and then started to rise steadily. ETH cleared the $1,290 level and moved into a positive zone.
Nearly 5% price gain and a breakout above $1,320 resistance zone. Even higher than the $1,350 mark, Ether settled over the 100 hourly simple moving mean. It reached $1,370 before it began to decline.
Now, the price is moving towards $1,340. The 23.6% Fib Retracement level is the highest point of the upward movement from $1,252 swing high to $1,370 low. On the hourly chart for ETH/USD, there is a bullish trend line that forms with support at $1,320.
Source: TradingView.com, ETHUSD
Near the $1,370 mark is an immediate resistance to the upside. Near the $1,390 or $1,400 levels is the first significant resistance. The doors to a sharp increase could be opened by a clear upward break of the $1,400 resistance level. If this is the case, then the price may rise towards $1,500.
Dips Limited to ETH
The downside correction could be initiated if the resistance of $1,400 is not broken. The $1,340 level is the initial support for the downside.
Near the trend line and at the $1320 level is the next support. Near $1,300 is the main support. This is the Fib retracement area of the upward movement from the $1.252 swing low and $1,370 high. If the downside breaks below the $1300 zone, it could start a decline to $1.265 in near-term.
Technical Indicators
Minutely MACD – MACD is currently losing momentum for the bullish area of ETH/USD.
Hourly RSI – The RSI is at 50 for USD/ETH.
Major Support Level – $1,320
Major Resistance Level – $1,370
