Ethereum dived from the $ 417 swing high and traded below $ 350 against the US Dollar. ETH price is currently recovering above $ 375 and it is likely to climb back above $ 400.
- Ethereum started a sharp decline from the $ 417 high and dived towards the $ 300 support.
- The price recovered sharply above $ 350 and it is now trading above the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $ 385 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair seems to be setting up for a fresh bullish break above $ 390 and $ 400.
Ethereum Price Is Approaching Next Break
After a strong rally above $ 350 and $ 400, Ethereum faced a significant bearish move against the US Dollar. A high was formed near $ 417 before the price tumbled (similar to bitcoin and ripple) below $ 400 and $ 350.
The price even spiked below the $ 330 support level and the 100 hourly simple moving average. However, it found a strong buying interest near $ 305 and $ 300. Ether recovered sharply above the $ 330 and $ 350 levels.
There was a break above the $ 365 and $ 370 levels. The price is now trading near the $ 385 resistance zone. It is close to the 50% Fib retracement level of the recent decline from the $ 416 swing high to $ 353 swing low. It seems like there is a key contracting triangle forming with resistance near $ 385 on the hourly chart of ETH/USD.
Ethereum price trades above $ 380. Source: TradingView.com
If ether price breaks the triangle resistance, it could test the $ 390 resistance. The 61.8% Fib retracement level of the recent decline from the $ 416 swing high to $ 353 swing low is also near the $ 392 level.
A successful break above the triangle resistance and $ 392 could open the doors for a fresh increase above the $ 400 level. In the mentioned case, the price is likely to rise towards the $ 415 and $ 420 levels in the coming sessions.
Dips Likely To Be Contained in ETH
The triangle support is near the $ 378 level. If there is a bearish break below the triangle support, Ethereum could test the $ 365 support.
The next major support is near the $ 360 level and the 100 hourly SMA, where the bulls are likely to take a strong stand. Any further losses could lead the price towards the $ 300 handle.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now back above the 50 level.
Major Support Level – $ 365
Major Resistance Level – $ 392