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Ethereum staged a strong increase and climbed above the $370 resistance against the US Dollar. ETH price is currently consolidating gains and it could correct lower.
- Ethereum started a decent increase above the $355, $365 and $370 resistance levels.
- The price is now well above $365 and the 100 hourly simple moving average.
- There is a short-term bullish trend line forming with support near $372 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but dips are likely to remain contained near $365 or $355.
Ethereum Price Consolidating Gains
Ethereum started a fresh increase after it broke the key $355 resistance level (similar to bitcoin at $11,000). ETH price surpassed the $365 and $370 resistance levels to move into a positive zone.
There was also a close above the $370 level and ether price settled well above the 100 hourly simple moving average. A new monthly high is formed near $379 and the price is currently consolidating gains.
It corrected lower below the $372 level, plus the 23.6% Fib retracement level of the upward move from the $347 swing low to $379 high. However, the price remained well bid above the $365 support and it climbed back above $370.
Ethereum price settles above $365. Source: TradingView.com
There was also no break below the 50% Fib retracement level of the upward move from the $347 swing low to $379 high. It seems like there is a short-term bullish trend line forming with support near $372 on the hourly chart of ETH/USD.
On the upside, an initial resistance is near the $378 and $380 levels. A clear break above the $380 resistance level could open the doors for another increase. The next major resistance is near the $395 and $400 levels.
Dips Limited in ETH?
If Ethereum fails to clear the $378 resistance or $380, there could be a downside correction. A downside break below the trend line support could lead the price towards the $365 support level.
The 100 hourly simple moving average is also near the $365 level. Any further losses could lead ether price towards the main support at $355 (the last breakout resistance), where the bulls are likely to take a strong stand.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently holding the 50 level, with a few bearish signs.
Major Support Level – $365
Major Resistance Level – $380
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal