Ethereum rose more than 5%, breaking the USD 400 resistance against the US dollar. The ETH price dropped sharply from $ 415, but technical data suggest that the upward trend above $ 340 remains intact.
- The ETH price rose against the US dollar above the resistance levels of USD 380 and USD 400.
- There was a strong bearish response from $ 415 and the price fell more than $ 50.
- On the ETH / USD 4-hour chart (octopus data feed), two key bullish trend lines are forming with support near $ 365 and $ 340.
- The pair is likely to recover and rise above $ 380 as long as it is above $ 340.
The Ethereum price corrects the profits
In recent days there has been a sharp rise in the Ethereum above the $ 300 and $ 320 levels against the US dollar. The ETH price even broke the USD 350 resistance and was well above the simple moving average of 100 (4 hours).
The upward movement was strong and the ether rose above the levels of $ 380 and $ 400. The price was trading at a new multi-moth high near the $ 415 level and is currently correcting lower. There was a sharp bearish reaction from the $ 415 swing high and the price fell more than $ 50.
There was a big surge below the $ 350 support level. The price even fell below the 50% fib retracement level of the recent surge from $ 316 to $ 415. However, Ether remained well offered near the support level of $ 300 and the simple moving average of $ 100 (4 hours).
Ethereum price trades above $400. Source: TradingView.com
It was close to the 1,236 Fib expansion level of the recent surge from the $ 316 low to the $ 415 high. More importantly, two major bullish trendlines are forming on the 4-hour ETH / USD chart, with support near $ 365 and $ 340.
The pair is currently recovering and is back above the $ 350 level. Initial resistance is near the $ 380 level above which the bulls could potentially push the price above $ 400. A daily close above the $ 400 level could lead the price towards the $ 420 and $ 432 levels in the coming days.
Limited disadvantages in ether (ETH)?
If Ethereum stays below the resistance levels of $ 400 and $ 380, there could be other drawbacks. The first major support is near the $ 340 level below which the price could struggle in the short term.
The next major support is near the levels of $ 305 and $ 300 (the most recent breakout zone) below which the bears are likely to seek an extended correction towards the $ 280 support level.
4 hour MACD – The MACD for ETH / USD is losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH / USD is still above the 50 level.
Main support level – $ 340
Main resistance level – $ 380