TA: Ethereum Prints Bullish Technical Pattern, Why It Could Rally Past $385

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Ethereum is gaining bullish momentum above $375 against the US Dollar. ETH price is showing positive signs and it might even climb above the $385 resistance.

  • Ethereum started a fresh upward move after forming a support base near $368.
  • The price is now trading well above the $375 level and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct a few points, but there are high chances of more upsides above $385.

Ethereum Price is Gaining Traction

Ethereum started a decent upward move after it formed a strong support base above the $365 level. ETH price broke the $372 pivot level to start the current recovery wave.

The bulls gained strength, resulting in a push above the $375 resistance. Moreover, there was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD.

Ether price surpassed the 50% Fib retracement level of the downward move from the $385 swing high to $365 swing low. It is now trading well above the $375 level and the 100 hourly simple moving average.

Ethereum Price

Source: ETHUSD on TradingView.com

The price is also trading above the 76.4% Fib retracement level of the downward move from the $385 swing high to $365 swing low. A high is formed near $382 and the price is clearly gaining momentum. The next immediate resistance is near the $385 swing high, above which ether is likely to accelerate higher (similar to bitcoin).

The next major resistance is near the $392 level. A clear break above the $392 resistance could open the doors for a test of the $400 barrier in the coming sessions.

Downside Break in ETH?

If Ethereum fails to clear the $385 resistance levels, it might start a short-term downside correction. An initial support is near the $378 zone.

The main support is near the broken trend line, $375, and the 100 hourly simple moving average. If ether fails to stay above $375, it could retest the $368 and $365 support levels.

Technical Indicators

Hourly MACD The MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSI The RSI for ETH/USD is well above the 50 level.

Major Support Level – $375

Major Resistance Level – $385

Via: https://www.newsbtc.com

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