Ethereum is up over 5% and it broke the key $370 and $380 resistance levels against the US Dollar. ETH price could continue to rise towards $400 or $420 as long as it is above $370.
This past week, Ethereum managed to recover above the $350 resistance to move into a positive zone against the US Dollar. ETH price gained bullish momentum and surpassed the $360 resistance level.
The price gained pace after it broke the 23.6% Fib retracement level of the downward move from the $490 swing high to $310 low. Ether price is now trading nicely above $375 and the 100 simple moving average (4-hours).
It seems like there is a crucial rising channel forming with support near $350 on the 4-hours chart of ETH/USD. On the upside, an initial resistance is near the channel resistance at $395. The first major resistance for the bulls is near the $400 level.
The 50% Fib retracement level of the downward move from the $490 swing high to $310 low is also near the $400 level to act as a hurdle for the bulls. To move into a positive zone, ether must climb above the $400 resistance.
The next major resistance is near the $420 level, above which the bulls are likely to aim a test of the $500 handle in the coming days.
If Ethereum fails to clear the $400 resistance zone, it might start a downside correction. An initial support is near the $375 level or the 100 simple moving average (4-hours).
The next major support is near the $360 level or the channel lower trend line at $350. A successful daily close below the $350 support could start another slide towards the $310 support zone.
4 hours MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
4 hours RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $350
Major Resistance Level – $400