Ethereum Price Holds Strong at $400: Technicals Suggest It Could Outperform
Ethereum gained bullish momentum above the $400 resistance against the US Dollar. ETH price is currently consolidating above $400 and it is likely to climb above $410.
- Ethereum is following a positive path above the $398 and $400 support levels.
- The price climbed to a new weekly high near $411 and settled above the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher above $410 as long as it is above the $400 support zone.
Ethereum Price Holding Uptrend Support
Yesterday, we discussed why Ethereum might not stay below $400 for too long against the US Dollar. ETH price did form a decent support base above $390 and climbed above the $400 resistance level.
It gained pace above the $405 level and settled above the 100 hourly simple moving average. A new weekly high is formed near $411 and ether is currently correcting lower. There was a break below the $405 level, plus the 23.6% Fib retracement level of the recent increase from the $383 swing low to $411 high.
The price is now trading near a major support at $400 and the 100 hourly SMA. It seems like the previous hurdle near the $400 level is now acting as a strong support. There is also a major bullish trend line forming with support near $400 on the hourly chart of ETH/USD.
Ethereum price trades above $400. Source: TradingView.com
The next major support is near the $398 level. It is close to the 50% Fib retracement level of the recent increase from the $383 swing low to $411 high.
On the upside, the bulls are facing hurdles near the $408 and $410 levels. A successful close above the $410 resistance and the $411 high might set the stage for a larger rally. The next key resistance is seen near the $425 level.
Bearish Break in ETH?
If Ethereum fails to surpass the $408 and $410 resistance levels, it could break the $400 support. The main breakdown zone for the bulls is near the $395 level.
A clear break below the $395 support might push ether back into a bearish zone. The next support is near the $380 level, below which the bears are likely to aim a test of $365 or $362.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently just above the 50 level.
Major Support Level – $400
Major Resistance Level – $410