Ethereum’s gains are faster than the US Dollar at $1,360. If the price moves above $1,400 it could trigger a new rally.
- Ethereum has shown positive signals above the $1320 and $1350 support levels.
- The current price trades above $1,350 as well as the simple 100 hour moving average.
- The hourly chart for ETH/USD showed a breakout above the major bearish trendline with resistance at $1,342 (data feed via Kraken).
- A clear of the $1,400 resistance zone could allow for a further rally.
Ethereum price targets higher
Ethereum formed a support base that was above $1,260. ETH began a steady rise after clearing the $1,300 resistance. This is similar to bitcoin.
In order to move into a positive zone the price broke through $1,330/$1,350 resistance levels. On the hourly chart for ETH/USD, there was also a breakout above a significant bearish trend line, with resistance at $1,342. Today, the pair is trading at a level above the 76.4% Fib fib retracement of the downward movement from the $1.419 swing high and low to $1.219 low.
The Ether price also trades above $1,350 as well the 100-hourly simple moving average. Surprisingly, resistance is near $1,395 to $1,400.
Next is $1,420. The $1,420 level is the next major resistance. A break of this level could lead to a significant increase in price towards $1,465 This is just below the 1.236 Fib extension of the downward swing from the $1.419 swing high towards the $1.219 low.
Source: TradingView.com, ETHUSD
An increase in gains could lead to a push towards $1,500 resistance. Bulls may aim for $1,580 above that level.
Dips Limited in Ethereum?
The downside correction could be initiated if the resistance of $1,400 is not broken. Initial support is close to $1,350.
Next major support will be near the $1320 level and the 100-hourly simple moving average. In the short term, a downside breakout below $1,320 could push the price to the $1.250 support. Selling could be increased and the price may drop as high as $1,200 if there are more losses.
Technical indicators
Minutely MACD – In the bullish zone, momentum is being gained by MACD for USD/ETH.
Hourly RSI – The RSI is at 50 for USD/ETH.
Major Support Level – $1,320
Major Resistance Level – $1,400