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Ethereum was up 3% and is trading well above $ 400 against the US dollar. The price of ETH is showing positive signals and could rise if there is a clear break above $ 410.
- Ethereum is back above the key support levels of $ 400 and $ 402.
- The price is currently facing a major hurdle near $ 410, but is above the 100-hour simple moving average.
- There is a crucial contraction triangle forming with resistance near $ 408 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could resume its rally if it breaks out of the $ 408 and $ 410 resistance levels in the near term.
The price of Ethereum is showing bullish signals
After a strong rally in bitcoin, Ethereum also gained traction and broke through the resistance levels of $ 395 and $ 400. The upward movement was such that the price of ETH settled above the $ 400 and moving average. simple of 100 hours.
There was also a break above the bearish trend line highlighted yesterday with a resistance near $ 398 on the ETH / USD hourly chart. It opened the door for further gains above $ 405, but the ether price struggled to break out of the $ 410 resistance zone.
Source: ETHUSD on TradingView.com
It has formed a high near $ 410 and the price is currently consolidating gains. There was a small correction below $ 408, but the price remained above the 23.6% Fib retracement level of the upward move from the low of $ 383 to the high of $ 410.
A crucial contraction triangle with resistance near $ 408 appears to be forming on the same chart. If there is a clear break above the $ 408 and $ 410 resistance levels, the price could rise. The next key resistance is near $ 418, above which the bulls could point to a new monthly high above $ 422.
Breaking to the downside in ETH?
If Ethereum fails to break out of the $ 408 and $ 410 resistance levels, there is a risk of another drop. Initial bearish support is near the triangle trend line at $ 402.
A clear break below the support of the triangle could open the door to a further dip below $ 400. The next major support is near the $ 396 level or the 50% Fib retracement level of the upward move from the low of $ 383 to the high of $ 410, below which ether may revisit the $ 385 support zone.
Technical indicators
MACD hourly – The MACD for ETH / USD is struggling to pick up the pace in the bullish zone.
RSI hourly – The RSI for ETH / USD is now above the 50 level.
Primary Support Level: $ 402
Major resistance level – $ 410
