Ethereum gained bullish momentum above the $406 resistance against the US Dollar. ETH price is up over 5% and it seems like the bulls are aiming a test of $445 in the coming days.
- Ethereum climbed higher steadily and broke the $400 and $406 resistance levels.
- The price is now trading nicely above the $420 level the 100 hourly simple moving average.
- There is a short-term breakout pattern forming with resistance near $430 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct a few points, but the bulls seem to be aiming a test of $445 or $450.
Ethereum Price Gaining Bullish Momentum
In the weekly analysis, we discussed the chances of more upsides in Ethereum if it clears $408 against the US Dollar. ETH price did gain bullish momentum above the $406 and $408 resistance levels.
It climbed over 5% and surpassed the $420 resistance level. A high is formed near $430 and ether is now trading well above the 100 hourly simple moving average. It is currently consolidating gains below the $430 level.
There is a short-term breakout pattern forming with resistance near $430 on the hourly chart of ETH/USD. The triangle support is near the 23.6% Fib retracement level of the recent upward move from the $403 swing low to $430 high.
Ethereum price trades above $425. Source: TradingView.com
If there is a downside break below the triangle support, ether price could test the $420 or $416 support. The 50% Fib retracement level of the recent upward move from the $403 swing low to $430 high is also near $416.
On the upside, the bulls are facing hurdles near the $428 and $430 levels. A successful close above the $430 resistance could open the doors for another 3%-5% rise. The next key resistance is likely to be $445 or $450.
Downsides Are Likely To Be Limited in ETH
If Ethereum starts a steady downside correction, the $420 support or the $416 technical level might protect more downsides in the near term.
If there are more losses, the next major support is near the $406 level (the recent breakout zone), where the bulls are likely to take a stand. The main support and a pivot zone is near $400.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 60 level.
Major Support Level – $420
Major Resistance Level – $430
by Aayush Jindal on August 31, 2020 at 11:18AM
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