TA: Ethereum Signaling Bullish Breakout, Why ETH Could Rally Above $1,400

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Ethereum gained bullish momentum above $1,350 against the US Dollar. ETH price is showing positive signs and it is likely to accelerate higher above $1,400.

  • Ethereum is showing a lot of positive signs above $1,320 and $1,350.
  • The price is now approaching the $1,400 resistance and it is above the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $1,325 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong increase if it clears the $1,400 resistance zone in the near term.

Ethereum Price is Gaining Momentum

After forming a support base above $1,280, Ethereum started a fresh upward move. ETH price surpassed the $1,300 and $1,320 resistance levels to move into a positive zone.

There was also a break above a major bearish trend line with resistance near $1,325 on the hourly chart of ETH/USD. It opened the doors for a steady rise above the $1,350 level and the 100 hourly simple moving average.

Ether price traded close to the $1,400 resistance and a high is formed near $1,389. The price is currently correcting lower below $1,380. It already tested the 23.6% Fib retracement level of the recent upward move from the $1,300 swing low to $1,389 high.

Ethereum Price

Source: ETHUSD on TradingView.com

On the downside, there is a major support forming near the $1,340 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent upward move from the $1,300 swing low to $1,389 high.

On the upside, the $1,390 and $1,400 levels are initial hurdles. The current price action suggests high chances of an upside break above the $1,400 resistance. In the stated case, the price could easily drift towards the $1,450 and $1,480 levels. The next major resistance is near the $1,500 level.

Fresh Dip in ETH?

If Ethereum fails to clear the $1,390 and $1,400 resistance levels, it could correct lower. As mentioned, there is a strong support forming near the $1,340 level and the 100 hourly simple moving average.

If ether price fails to stay above the $1,340 support, there is a risk of a drop towards the $1,320 support zone and the broken trend line.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining pace in the bullish zone.

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

Major Support Level – $1,340

Major Resistance Level – $1,400

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