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Ethereum ether remained above the $ 372 support and recovered well against the US dollar. The price of ETH is now struggling to rise above $ 392, above which it could significantly increase.
- Ethereum has started a decent recovery wave after finding support near the $ 372 level.
- The price is now trading above $ 382 and is testing the 100-hour simple moving average.
- There has been a break above a key connecting the bearish trend line with the resistance near $ 384 on the ETH / USD hourly chart (data feed via Kraken).
- The pair needs to settle above $ 392 to start a strong rally in the coming sessions.
The price of Ethereum is attempting a break to the upside
After diving towards the support of $ 372, Ethereum held the ground and started a decent move to the upside. The price of ETH broke the $ 380 resistance level to move into a short-term bullish zone.
The upward movement was such that the ether price broke through the 23.6% Fib retracement level of the downward movement from the swing high of $ 404 to the low of $ 371. Also, there was a breakout. above a key connecting the bearish trend line with the resistance near $ 384 on the hourly chart of ETH / USD.
The price is now facing hurdles near $ 388 and $ 390. The 50% Fib retracement level of the downward movement from the $ 404 swing high to the $ 371 swing low also acts as resistance. It is now trading above $ 382 and is testing the 100-hour simple moving average.
Source: ETHUSD on TradingView.com
To start a strong rally, ether must break out of the $ 390 resistance and then settle above $ 392. A successful close above the $ 392 resistance could possibly initiate a broader upward movement (similar to bitcoin if it clears $ 14,000) towards the $ 405 and $ 412 levels. Any further gains could drive the price towards the level. resistance of $ 420.
Downside Limited in ETH?
If Ethereum fails to break out of the $ 390 and $ 392 resistance levels, it may react to the downside. Initial support on the downside is near the $ 382 level.
The first major support is near the $ 380 level. A clear break below $ 380 could initiate another drop to the main $ 372 support level. Further losses are likely to push ether towards the $ 365 level in the coming sessions.
Technical indicators
MACD hourly – The MACD for ETH / USD is slowly gaining momentum in the bullish zone.
RSI hourly – The RSI for ETH / USD is now well above the 50 level.
Main Support Level: $ 380
Major Resistance Level – $ 392
