TA: Ethereum Prints Bullish Technical Pattern, Why It Could Rally Past $385
Ethereum is gaining bullish momentum above $375 against the US Dollar. ETH price is showing positive signs and it might even climb above the $385 resistance.
- Ethereum started a fresh upward move after forming a support base near $368.
- The price is now trading well above the $375 level and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct a few points, but there are high chances of more upsides above $385.
Ethereum Price is Gaining Traction
Ethereum started a decent upward move after it formed a strong support base above the $365 level. ETH price broke the $372 pivot level to start the current recovery wave.
The bulls gained strength, resulting in a push above the $375 resistance. Moreover, there was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD.
Ether price surpassed the 50% Fib retracement level of the downward move from the $385 swing high to $365 swing low. It is now trading well above the $375 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The price is also trading above the 76.4% Fib retracement level of the downward move from the $385 swing high to $365 swing low. A high is formed near $382 and the price is clearly gaining momentum. The next immediate resistance is near the $385 swing high, above which ether is likely to accelerate higher (similar to bitcoin).
The next major resistance is near the $392 level. A clear break above the $392 resistance could open the doors for a test of the $400 barrier in the coming sessions.
Downside Break in ETH?
If Ethereum fails to clear the $385 resistance levels, it might start a short-term downside correction. An initial support is near the $378 zone.
The main support is near the broken trend line, $375, and the 100 hourly simple moving average. If ether fails to stay above $375, it could retest the $368 and $365 support levels.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is well above the 50 level.
Major Support Level – $375
Major Resistance Level – $385