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Ethereum traded to a new monthly high at $422 before correcting lower against the US Dollar. ETH price is trading well above the 100 SMA (H4) and it is likely to resume its upside above $422.
- ETH price is trading in a strong uptrend above the $400 support against the US Dollar.
- The price is trading well above the $380 pivot level and the 100 simple moving average (4-hours).
- There was a break above a contracting triangle with resistance near $412 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to rally above $422 and $425 as long as it is trading above the $400 handle.
Ethereum Price is Gaining Momentum
This past week, Ethereum started a strong increase above the $365 resistance after bitcoin’s rally against the US Dollar. ETH price broke the $380 and $400 resistance levels to move into a bullish zone.
The upward move was such that the price even spiked above the $420 resistance and settled well above the 100 simple moving average (4-hours). A new monthly high was formed near $422 before ether price started a downside correction.
There was a break below the $410 support, but the price remained well bid above the $400 support. A low is formed near $402 and the price is currently rising. It broke the 50% Fib retracement level of the recent decline from the $422 high to $402 low.
Source: ETHUSD on TradingView.com
Moreover, there was a break above a contracting triangle with resistance near $412 on the 4-hours chart of ETH/USD. The pair is now trading nicely above the $415 level, plus the 61.8% Fib retracement level of the recent decline from the $422 high to $402 low.
The current price action is positive and it seems like ether is aiming a fresh high above the $420 and $422 resistance levels. The next key resistance is near the $435 level, above which it could rally towards the $450 resistance zone.
Downside Correction in Ether (ETH)?
If Ethereum fails to clear the $420 and $422 resistance levels, it might start a fresh downside correction. An initial support on the downside is near the $410 level.
The main support is forming near the $400 level. Any further losses could lead the price towards the $380 support level and the 100 simple moving average (4-hours).
4 hours MACD – The MACD for ETH/USD is about to move back into the bullish zone.
4 hours RSI – The RSI for ETH/USD is still well above the 60 level.
Major Support Level – $400
Major Resistance Level – $422
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal