Ethereum rallied more than 5% and broke the $ 400 resistance against the US Dollar. ETH price retreated sharply from $ 415, but technicals suggest uptrend remains intact above $ 340.
- ETH price surged above the $ 380 and $ 400 resistance levels against the US Dollar.
- There was a strong bearish reaction from the $ 415 level and the price dumped more than $ 50.
- There are two key bullish trend lines forming with support near $ 365 and $ 340 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to recover and rise above $ 380 as long as it is trading above $ 340.
Ethereum Price is Correcting Gains
In the past few days, there was a strong increase in Ethereum above the $ 300 and $ 320 levels against the US Dollar. ETH price even broke the $ 350 resistance and settled well above the 100 simple moving average (4-hours).
The upward move was strong and ether surged above the $ 380 and $ 400 levels. The price traded to a new multi-moth high near the $ 415 level and it is currently correcting lower. There was a sharp bearish reaction from the $ 415 swing high and the price dropped more than $ 50.
There was a huge spike below the $ 350 support level. The price even dumped below the 50% Fib retracement level of the recent surge from the $ 316 swing low to $ 415 high. However, ether remained well bid near the $ 300 support level and the 100 simple moving average (4-hours).
Ethereum price trades above $ 400. Source: TradingView.com
It traded close to the 1.236 Fib extension level of the recent surge from the $ 316 swing low to $ 415 high. More importantly, there are two key bullish trend lines forming with support near $ 365 and $ 340 on the 4-hours chart of ETH/USD.
The pair is currently recovering and it is back above the $ 350 level. An initial resistance is near the $ 380 level, above which the bulls may perhaps 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.
Downsides Limited in Ether (ETH)?
If Ethereum remains below the $ 400 and $ 380 resistance levels, there could be more downsides. The first major support is near the $ 340 level, below which the price might struggle in the short term.
The next major support is near the $ 305 and $ 300 levels (the recent breakout zone), below which the bears are likely to target an extended correction towards the $ 280 support level.
4 hours 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.
Major Support Level – $ 340
Major Resistance Level – $ 380