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Ethereum ether started a new rise above $ 385, following bitcoin’s rise above $ 13,800 against the US dollar. The price of ETH is likely to continue to rise towards $ 420 and $ 425.
- Ethereum rose over 5% and broke the key $ 400 resistance level.
- The price is now trading above $ 404 and the hourly simple moving average of 100.
- There has been a break above a major contracting triangle with resistance near $ 385 on the hourly chart of ETH / USD (data feed via Kraken).
- The pair is likely to continue to rise once the $ 408 and $ 410 levels are cleared.
Ethereum’s price is gaining bullish momentum
After finding strong support near $ 372, Ethereum started a new rise. Bitcoin’s price rose above $ 13,800 and $ 14,000, resulting in a decent rise in ETH above the $ 388 and $ 395 resistance levels.
The recent rally started after a breakout occurred above a major contracting triangle with resistance near $ 385 on the ETH / USD hourly chart. The price of Ether also broke through the $ 400 resistance level and stood well above the 100-hour simple moving average.
A new monthly high has formed near $ 408 and the price is currently consolidating gains. Initial support is near the $ 402 and $ 401 levels. The 23.6% Fib retracement level of the recent rise from the swing low of $ 379 to the high of $ 408 is also close to the $ 401 level.
Source: ETHUSD on TradingView.com
It appears that a key contraction triangle is forming with resistance near $ 407 on the same chart. A clear break above the resistance of the triangle and $ 208 could open the door for further upside.
The next immediate resistance is near the $ 412 level, above which the bulls are likely to aim for a broader rally towards the $ 420 and $ 425 resistance levels in the coming sessions.
Downside Limited in ETH?
If Ethereum fails to break out of the $ 407 and $ 408 resistance levels, it could correct below. An initial bearish support is near the $ 400 level and the lower trend line of the triangle.
If there is a downward break below the triangle support at $ 401 and $ 400, the ether price could drop towards the $ 395 support. It is close to the 50% Fib retracement level of the recent rise from the low swing of $ 379 to $ 408 maximum.
Technical indicators
MACD hourly – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
RSI hourly – The RSI for ETH / USD is now well above the 60 level.
Main Support Level: $ 400
Major Resistance Level: $ 408
