Ethereum’s ether stayed above the USD 372 support and rebounded nicely against the US dollar. ETH price is now struggling to free up $ 392 above which it could rise significantly.
- Ethereum started quite a wave of recovery after it found support near the USD 372 level.
- The price is now trading above $ 382 and testing the 100 easy hourly moving average.
- There was a break above a major connecting bearish trendline with resistance at $ 384 on the ETH / USD hourly chart (data feed via Kraken).
- The pair will have to settle for more than $ 392 to start a strong rally in the coming sessions.
Ethereum price is trying to break upside down
After diving to the $ 372 supportEthereum held up and started quite a bit of upward movement. ETH price broke the USD 380 resistance level to move into a short-term bullish zone.
The upward move was such that the ether price surpassed the 23.6% Fib retracement level of the downward move from the $ 404 swing high to $ 371 swing low. Additionally, there was a break above a key interlocking bearish trendline with resistance near $ 384 on the ETH / USD hourly chart.
The price is now facing hurdles near USD 388 and USD 390. The 50% Fib retracement level of the downward move from the USD 404 swing high to USD 371 swing low is also acting as a resistance. It is now trading above $ 382 and testing the 100 easy hourly moving average.
Source: ETHUSD on TradingView.com
To start a strong rally, ether must clear the resistance from USD 390 and then settle above USD 392. A successful close above the USD 392 resistance may initiate a larger upward move (similar to bitcoin when it releases $ 14,000) to the $ 405 and $ 412 levels. Any further gain could move the price towards the USD 420 resistance level.
Limited disadvantage in ETH?
If Ethereum didn’t clear the USD 390 and USD 392 resistance levels, it could react on the downside. An initial support on the downside is near the USD 382 level.
The first major support is near the USD 380 level. A clear break below USD 380 could trigger another decline towards the key USD 372 support level. More losses are likely to push ether towards the USD 365 level in the coming sessions.
MACD per hour – The MACD for ETH / USD is slowly gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH / USD is now well above the 50 level.
Major Support Level – USD 380
Major Resistance Level – $ 392