Ethereum is gaining pace above $1,360 against the US Dollar. ETH could start a fresh rally if there is a clear move above the $1,400 resistance zone.
Ethereum is showing positive signs above the $1,320 and $1,350 support levels.
The price is now trading above $1,350 and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $1,342 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its rally if it clears the key $1,400 resistance zone.
Ethereum Price Aims Higher
Ethereum was able to form a support base above the $1,260 level. ETH started a steady increase after it cleared the $1,300 resistance, similar to bitcoin.
The price cleared the $1,330 and $1,350 resistance levels to enter a positive zone. Besides, there was a break above a major bearish trend line with resistance near $1,342 on the hourly chart of ETH/USD. The pair is now trading above the 76.4% Fib retracement level of the downward move from the $1,419 swing high to $1,219 low.
Ether price is also trading above $1,350 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,395 and $1,400 levels.
The next major resistance is near $1,420 level. A clear break above $1,420 might start a decent increase towards the $1,465 level. It is near the 1.236 Fib extension level of the downward move from the $1,419 swing high to $1,219 low.
Any more gains may perhaps open the doors for a move towards the $1,500 resistance, above which the bulls could aim $1,580 in the coming sessions.
Dips Limited in ETH?
If ethereum fails to climb above the $1,400 resistance, it could start a downside correction. An initial support on the downside is near the $1,350.
The next major support is near the $1,320 level and the 100 hourly simple moving average. A downside break below the $1,320 level might send the price towards the $1,250 support in the near term. Any more losses could increase selling and the price might drop to $1,200.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,320
Major Resistance Level – $1,400
