Ethereum Watch – Expected to Rally But There’s Something Interfering
Throughout the past week, Ethereum has managed to remain pretty stable above the $300 support level against the U.S. dollar. ETH price changed hands as low as $313 and recently started to recover in a steady wave above the $330 resistance line.
The crypto coin’s price managed to rebound nicely above the $335 and $340 levels, with the price gaining pace after a break above the connecting bearish trend level took place, with resistance close to the $430 line on the 4-hour chart of the ETH/USD pair.
Ethereum Price Gains Bullish Momentum
There was also a break just above the 50 percent Fibonacci retracement level of the downward move from the $394 high to $313 swing low. ETH is now changing hands above the $350 resistance line and near the 100 simple moving average (SMA) on the 4-hour chart. Still, it is encountering some strong resistance close to the $362 level.
ETH trades above $350. [Image Source: TradingView]
It appears like the 61.8 percent Fibonacci retracement level on the downward activity from the $394 high to $313 swing low is acting as a powerful resistance zone. There is also a main rising channel taking form with support close to $352 on the same chart.
A clear break above the channel resistance, 100 SMA on the 4-hour chart, and the $362 zone could offer some possibilities for a dynamic increase. The next key obstacle is near the $375 level, above which the ETH price might start a rally to $400.
Downside Movement Expected in ETH Price
If the Ethereum price doesn’t manage to clear the $362 resistance level, it might start a downside correction pattern; initial support is found close to the channel support at $352.
In case there’s a downside break below the channel support at $352, there is the danger of a drop towards the $345 support area. Any more losses might make the current bullish wave irrelevant, and ETH could revisit the $315 level.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.