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Key Reasons Why Ethereum Might Not Stay Below $400 For Too Long | coin❖trellis

Key Reasons Why Ethereum Might Not Stay Below $400 For Too Long

Ethereum is holding a crucial support zone near the $380 level against the US Dollar. ETH price seems to be basing for the next move and it might surge above $400 in the near term.

  • Ethereum is currently consolidating above the $380 and $385 support levels.
  • The price is likely to face hurdles near $395, $400, and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with resistance near $395 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase if it clears the $395 and $400 resistance levels.

Ethereum Price Approaching Next Break

Ethereum traded as low as $379 and recently started correcting losses against the US Dollar. ETH recovered above $385 and it seems like the price is forming a decent support base above $380.

There was a break above the $390 level, plus the 23.6% Fib retracement level of the downward move from the $20 swing high to $379 low. Moreover, ether price was able to climb above a key bearish trend line with resistance near $390 on the hourly chart.

The price is currently facing a strong resistance near the $395 level. There is also a key contracting triangle forming with resistance near $395 on the same chart of ETH/USD. The next key resistance is near the $400 level and the 100 hourly simple moving average.

Ethereum price trades above $390. Source: TradingView.com

The 50% Fib retracement level of the downward move from the $20 swing high to $379 low is also near $400. If ether surpasses the $395 and $400 resistance levels, it could start a steady rise.

A successful close above the $400 resistance level may perhaps lead the price towards the $420 resistance zone in the coming sessions.

Another Rejection for ETH?

If Ethereum fails to break the $395 and $400 resistance levels, it could decline again. An initial support is near the $390 level. The first major support could be near the triangle lower trend line at $388.

A downside break below the triangle support might push the price further lower towards $385. To move further into a bearish zone, the bears must push the price below the range support at $380.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bullish zone.

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

Major Support Level – $385

Major Resistance Level – $400

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