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Ethereum is recovering higher and trading above the $335 resistance against the US Dollar. ETH price is likely to accelerate higher if it clears the $360 level and the 100 hourly SMA.
- Ethereum is slowly recovering above the $335 and $340 resistance levels.
- The price is still facing a major resistance near $360 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $351 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a sharp relief rally if it clears the $360 resistance zone.
Ethereum Price Approaching Breakout Zone
After forming a strong support base above $310, Ethereum started a decent recovery. ETH price recovered above the $320 and $335 resistance levels to move into a short-term positive zone.
There was a break above the 50% Fib retracement level of the downward move from the $360 swing high to $323 swing low. More importantly, there was a break above a major bearish trend line with resistance near $351 on the hourly chart of ETH/USD.
Ether price is now consolidating above the broken trend line and $345. It seems like the price is stuck near the 76.4% Fib retracement level of the downward move from the $360 swing high to $323 swing low.
Ethereum price trades above $345. Source: TradingView.com
On the upside, there is a strong resistance forming near the $360 level and the 100 hourly simple moving average. A clear break and close above the 100 hourly SMA could lift the market sentiment and the price might climb above the $370 resistance.
The next stop for the bulls might be near the $385 level or the 1.236 Fib extension level of the downward move from the $360 swing high to $323 swing low. The main barrier is now forming near $400.
Fresh Drop in ETH?
If Ethereum fails to clear the $360 resistance and the 100 hourly SMA, there is a risk of a fresh decline. An initial support on the downside is near the $340 level.
The next major support is near the $332 level and a connecting bullish trend line on the same chart. A break below the trend line and $330 might push ether back towards the $310 support.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $332
Major Resistance Level – $360
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal