Ethereum dived from the $417 swing high and traded below $350 against the US Dollar. ETH price is currently recovering above $375 and it is likely to climb back above $400.
- Ethereum started a sharp decline from the $417 high and dived towards the $300 support.
- The price recovered sharply above $350 and it is now trading above the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $385 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair seems to be setting up for a fresh bullish break above $390 and $400.
Ethereum Price Is Approaching Next Break
After a strong rally above $350 and $400, Ethereum faced a significant bearish move against the US Dollar. A high was formed near $417 before the price tumbled (similar to bitcoin and ripple) below $400 and $350.
The price even spiked below the $330 support level and the 100 hourly simple moving average. However, it found a strong buying interest near $305 and $300. Ether recovered sharply above the $330 and $350 levels.
There was a break above the $365 and $370 levels. The price is now trading near the $385 resistance zone. It is close to the 50% Fib retracement level of the recent decline from the $416 swing high to $353 swing low. It seems like there is a key contracting triangle forming with resistance near $385 on the hourly chart of ETH/USD.
Ethereum price trades above $380. Source: TradingView.com
If ether price breaks the triangle resistance, it could test the $390 resistance. The 61.8% Fib retracement level of the recent decline from the $416 swing high to $353 swing low is also near the $392 level.
A successful break above the triangle resistance and $392 could open the doors for a fresh increase above the $400 level. In the mentioned case, the price is likely to rise towards the $415 and $420 levels in the coming sessions.
Dips Likely To Be Contained in ETH
The triangle support is near the $378 level. If there is a bearish break below the triangle support, Ethereum could test the $365 support.
The next major support is near the $360 level and the 100 hourly SMA, where the bulls are likely to take a strong stand. Any further losses could lead the price towards the $300 handle.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now back above the 50 level.
Major Support Level – $365
Major Resistance Level – $392