Ethereum Price Climbs 5% To Take Out Hurdles, Is Bottom Really In?

Ethereum climbed higher above the $1,350 resistance zone against the US Dollar. ETH tested the $1,420 zone and is currently consolidating gains.

• Ethereum started a steady increase above the $1,320 and $1,350 resistance levels.
• The price is now trading above $1,350 and the 100 hourly simple moving average.
• There is a connecting bullish trend line forming with support near $1,345 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start another increase if it stays above the $1,320 support zone.

Ethereum price remained well bid above the $1,300 resistance. ETH settled above the $1,320 resistance zone and started another increase, similar to bitcoin above $17,500.

There was a strong upward move above the $1,350 resistance zone. The price gained over 5% and even broke the $1,400 resistance zone. A high is formed near $1,419 and the price is now consolidating gains. Ether price is now trading above $1,350 and the 100 hourly simple moving average.

There is also a connecting bullish trend line forming with support near $1,345 on the hourly chart of ETH/USD. The pair seems to be trading just above the 23.6% Fib retracement level of the recent rally from the $1,322 swing low to $1,419 high.

An immediate resistance is near the $1,420 level. The next major resistance is near the $1,450 level. An upside break above the $1,450 resistance zone could set the pace for a larger increase.

Source: ETHUSD on TradingView.com

In the stated case, the price may perhaps climb higher towards the $1,500 resistance. Any more gains might send the price towards $1,550, above which the price could rise towards the $1,600 resistance zone.

If ethereum fails to clear the $1,420 resistance, it could start a downside correction. An initial support on the downside is near the $1,395 level.

The next major support is near the $1,370 level. It is near the 50% Fib retracement level of the recent rally from the $1,322 swing low to $1,419 high. If there is a move below $1,350, the price might test the trend line and $1,350. Any more losses might call for a test of the $1,320 zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,370

Major Resistance Level – $1,420