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Ethereum gained more than 4% and it surged above the $335 resistance against the US Dollar. ETH price traded to a new monthly high at $343 and it could rise further to $350.
- Ethereum started a fresh increase above the $325 and $335 resistance levels.
- The price traded to a new monthly high at $343 and it settled well above the 100 hourly simple moving average.
- There was a break above a crucial contracting triangle with resistance near $320 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently correcting gains, but it is likely to rise towards the $350 resistance.
Ethereum Price Gains Bullish Momentum
After a couple of swing moves and a downside correction, Ethereum found support above $315 against the US Dollar. A support base was formed above the $320 level and recently ETH price started a fresh increase.
Ether climbed above the $325 pivot level and the 100 hourly simple moving average to move into a positive zone. As a result, there was a sharp increase and the price climbed above the $330 and $335 resistance levels.
During the surge, there was a break above a crucial contracting triangle with resistance near $320 on the hourly chart of ETH/USD. The pair even broke the $340 level and traded to a new monthly high near $343. It is currently correcting lower and trading below $340.
Ethereum price trades above $242. Source: TradingView.com
There was a break below the $335 level, plus the 23.6% Fib retracement level of the recent surge from the $315 swing low to $343 high. However, the price is now trading near the $330 support area (the recent breakout zone).
The 50% Fib retracement level of the recent surge from the $315 swing low to $343 high is also near the $328 level to provide support. On the upside, ether price is facing a short-term resistance near $335. The main hurdle is now near $342, above which the price is likely to accelerate higher towards the $350 resistance.
Dips Supported in ETH?
If there is a downside extension, Ethereum price might find bids near the $325 level. A downside break below the $328 and $325 levels might start another extended decline.
The next major support is near the $318 level and the 100 hourly SMA, where the bulls are likely to take a strong stand in the near term.
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well above the 55 level.
Major Support Level – $330
Major Resistance Level – $342
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal