Decision Time for Ethereum: Technicals Suggest a Crucial Breakout Pattern

Ethereum is slowly moving into a positive zone above the USD 350 resistance against the US dollar. ETH price has to break through the USD 362 and USD 365 resistance levels to continue rising.

  • Ethereum was trading above the USD 350 and USD 355 resistance levels to move into a positive zone.
  • The price appears to have a support base above $ 350 and the 100 hour simple moving average.
  • A major ascending channel is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 352.
  • The pair is likely to continue rising when it hits the $ 362 and $ 365 resistance levels.

The Ethereum price is showing positive signs

After breaking the $ 335 hurdle, Ethereum extended its surge above the $ 350 resistance. ETH price even went above the USD 350 resistance zone and the 100-hour simple moving average to get into a positive zone.

There was a spike above the $ 360 level, but it appears ether is facing hurdles near $ 362 and $ 365. There has recently been a downward correction but the price remained stable near $ 350. A swing low is being formed near $ 348 and the recent high has been near $ 360.

Initial support on the downside is near the $ 358 level or the 23.6% fib retracement level of the recent $ 348 rise to $ 360. It appears that a major upstream channel is forming on the hourly chart for ETH / USD with support near USD 352.

Ethereum

Ethereum price settles above $350. Source: TradingView.com

Channel support is close to the 50% fib retracement level of the recent spike from $ 348 to $ 360. A breakout pattern appears to be forming with resistance near $ 362.

A sharp break above the USD 362 and USD 365 resistance levels could potentially open the doors for a bigger move higher. The next major resistance is near the $ 375 level above which the bulls are likely to seek a test of the $ 400 resistance.

Downward pause at ETH?

If Ethereum fails to hit the USD 362 and USD 365 resistance levels, it risks breaking down. The first key support is near the channel support and $ 352.

The main support forms near the $ 350 level and the 100 hour SMA. A successful close below the USD 350 support zone could open the doors for a larger decline towards the USD 335 support in the near future.

Technical indicators

Hourly MACD – – The MACD for ETH / USD is now gaining pace in the bullish zone.

Hourly RSI – – The RSI for ETH / USD is currently well above the 50 level with a positive perspective.

Main support tier – $ 350

Main Resistance Level – $ 362



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