Analysis

Ethereum Gearing For Another Lift-Off to $465: Rally Isn’t Over Yet

Ethereum started a strong increase above $ 400 and traded close to $ 465 against the US Dollar. ETH price is correcting gains, but it is likely to climb again towards $ 465.

  • ETH price rallied above the $ 400 and $ 420 resistance levels against the US Dollar.
  • The price traded as high as $ 465 and settled well above the 100 simple moving average (4-hours).
  • There was a break above a crucial bearish trend line with resistance near $ 400 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is likely to rally again if it clears the $ 440, $ 445 and $ 450 resistance levels.

Ethereum Price is Holding Key Supports

This past week, Ethereum started a sharp increase above the $ 400 resistance against the US Dollar. A support base was formed near $ 372 before ETH price gained pace (similar to bitcoin above $ 14,000).

To start the rally, there was a break above a crucial bearish trend line with resistance near $ 400 on the 4-hours chart of ETH/USD. The pair surged above the $ 420 resistance and settled well above the 100 simple moving average (4-hours).

The upward move was such that the price climbed higher above the $ 450 resistance and traded to a new multi-month high at $ 465. Ether price started a downside correction from $ 465 and traded below the $ 450 support.

There was a break below the 23.6% Fib retracement level of the upward move from the $ 371 swing low to $ 465 high. The price also traded below the $ 440 support level, but it found support near the $ 425 level.

Ethereum Price

The next major support is near the $ 420 zone or the 50% Fib retracement level of the upward move from the $ 371 swing low to $ 465 high. Ether is currently rising and trading above $ 435. An initial resistance on the upside is near the $ 440 and $ 445 levels.

A clear break above the $ 445 resistance zone could open the doors for a fresh increase above $ 450. The next major resistance is near $ 465, above which the price could surge towards the $ 480 level.

More Downsides in Ether (ETH)?

If Ethereum fails to clear the $ 440 and $ 445 resistance levels, it might extend its downside correction. An initial support on the downside is near the $ 425 level.

The main support is forming near the $ 420 zone. Any further losses could lead the price towards the crucial $ 405 support (a multi-touch zone) and the 100 simple moving average (4-hours).

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.

4 hours RSI – The RSI for ETH/USD is still above the 50 level.

Major Support Level – $ 420

Major Resistance Level – $ 440

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Technical analysis – NewsBTC

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