Ethereum started a strong recovery wave above the $350 resistance against the US Dollar. ETH price is up over 10%, but it must still break the $370 resistance for upside continuation.
- Ethereum gaining traction above the $340 and $350 resistance levels.
- The price is now well above the 100 hourly simple moving average, but it is facing hurdles near $370.
- There was a break above a major bearish trend line with resistance near $340 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must surpass the $370 resistance for upside continuation in the near term.
Ethereum Price Rally Reaches Inflection Zone
After forming a support base above $330, Ethereum started a strong recovery wave. ETH price broke the $340 and $350 resistance levels to move into a positive zone.
There was a close above the $350 resistance and the 100 hourly simple moving average. The upward move gained pace after there was a break above a major bearish trend line with resistance near $340 on the hourly chart of ETH/USD.
The pair traded above the 50% Fib retracement level of the downward move from the $401 high to $310 swing low. Ether price is now testing another major resistance near the $370 level (the last breakdown zone).
Ethereum price trades above $360. Source: TradingView.com
The next key resistance is near the $380 level. It is close to the 76.4% Fib retracement level of the downward move from the $401 high to $310 swing low. A successful close above the $370 and $380 resistance levels may perhaps open the doors for a decent increase.
The next major resistance is near the $395 and $400 levels, above which the price is likely to rise steadily towards the $430 resistance zone.
Downside Correction in ETH?
If Ethereum fails to clear the $370 resistance or the $380 technical hurdles, there could be a short-term downside correction. An initial support on the downside is near the $360 level.
The next major support is near the $350 level and the 100 hourly simple moving average. If ether fails to stay above the $350 support, the price is likely to resume its decline. In the stated case, the bears might aim a retest of the $330 support.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently near the 70 level.
Major Support Level – $350
Major Resistance Level – $370