Ethereum extended its rally by 5% and it broke the $440 resistance against the US Dollar. ETH price is likely to break the $450 resistance, above which the bulls might aim $500.
In the weekly analysis, we discussed the chances of a big reaction from Ethereum bulls above $408 against the US Dollar. ETH price did break the $408 resistance and it even climbed above the $425 resistance level (as discussed in yesterday’s analysis).
Ether price is now up 5% and it even surpassed the $440 resistance. A new multi-week high is formed near $448 and the price is currently consolidating gains.
An initial support is near the $443 level since it is close to the 23.6% Fib retracement level of the recent rally from the $428 swing low to $448 high. There is also a crucial bullish trend line forming with support near $438 on the hourly chart of ETH/USD.
Ethereum price trades above $440. Source: TradingView.com
The trend line coincides with the 50% Fib retracement level of the recent rally from the $428 swing low to $448 high. On the upside, the price is facing hurdles near $448 and $450. A successful close above the $450 resistance could open the doors for another 5% rally.
The next key resistance is likely to be $465 or $470. In the mentioned case, there are chances of a sharp increase towards the $488 and $500 resistance levels in the near term.
If Ethereum fails to clear the $450 resistance, it could start a downside correction. The first key support is near the trend line and the $438 level.
A downside break below the trend line support might start an extended downside correction below $435. The next key support for the bulls could be near the $425 level.
Hourly MACD – The MACD for ETH/USD is currently gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is slowly moving into the overbought zone.
Major Support Level – $438
Major Resistance Level – $450