Ethereum Above This Confluence Resistance Could Start Strong Increase

newsbtc.com

Ethereum corrected lower below the $380 level, but it found support near $365 against the US Dollar. ETH price is currently rising, but it must surpass the key $380 zone for a strong upward move.

  • Ethereum is currently recovering from $365 and trading above the $372 level.
  • The price is facing a strong resistance near the $380 zone and the 100 hourly simple moving average.
  • There is a key declining channel forming with resistance near $380 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to climb higher towards $400 if it clears the $380 confluence resistance.

Ethereum Price Approaching Major Hurdle

In the past few sessions, Ethereum saw a steady decline from the $395 zone. ETH price broke the key $380 support level and settled below the 100 hourly simple moving average.

There was also a break below the $370 level, but ether price found support near the $365 level. A low is formed near $365 and the price is currently recovering higher. It broke the $370 level, plus the 23.6% Fib retracement level of the downward move from the $388 high to $365 low.

An immediate resistance is near the $375 level. The 50% Fib retracement level of the downward move from the $388 high to $365 low is also near the $376 level to act as a hurdle.

Ethereum Price

Ethereum price approaching $380. Source: TradingView.com

More importantly, there is a key declining channel forming with resistance near $380 on the hourly chart of ETH/USD. An intermediate resistance for Ethereum is near the $378 level and the 100 hourly SMA.

Ether is clearly facing a confluence resistance near the $378 and $380 levels. A successful break above the channel and $380 could open the doors for a strong increase in the near term. The next major resistance on the upside is near the $395 level, followed by $400.

Fresh Decline in ETH?

If Ethereum fails to surpass $375, $378, and the channel resistance, there is a risk of a fresh decline. An initial support is near the $370 level.

The next major support for the bulls is near the $365 level, below which the bears are likely to aim a test of the key $355 support zone in the coming sessions.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is still below the 50 level.

Major Support Level – $380

Major Resistance Level – $365

The original article is located at newsbtc.com

This content is provided by public RSS feed at www.newsbtc.com/feed/. Please contact us if you have any questions.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.