Ethereum Price Breaks Shackles, Why ETH Could Rally Before Bitcoin

Ethereum gained pace and broke the $1,320 resistance against the US Dollar. ETH is showing positive signs and might surge above the $1,400 resistance.

Ethereum started a steady increase above the $1,320 and $1,330 levels. The price is now trading above $1,300 and the 100 hourly simple moving average. There is a major bullish trend line forming with support near $1,320 on the hourly chart of ETH/USD (data feed via Kraken). The pair could rally before bitcoin if it stays above the $1,300 pivot zone.

Ethereum Price Gains Strength

Ethereum remained well bid above the $1,265 level and started a steady increase. ETH was able to clear the $1,290 and $1,300 levels to move into a positive zone.

The price gained nearly 5% and there was a break above the $1,320 resistance zone. Ether price even climbed above the $1,350 level and settled above the 100 hourly simple moving average. It traded as high as $1,370 and recently started a downside correction.

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The price is now moving lower towards the $1,340 zone. It is close to the 23.6% Fib retracement level of the upward move from the $1,252 swing low to $1,370 high. There is also a major bullish trend line forming with support near $1,320 on the hourly chart of ETH/USD.

Ethereum-19.png

Source: ETHUSD on TradingView.com

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An immediate resistance on the upside is near the $1,370 level. The first major resistance is near the $1,390 and $1,400 levels. A clear upside break above the $1,400 resistance zone could open the doors for a strong increase. In the stated case, the price might rise towards the $1,500 level.

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 $1,340 level.

The next major support is near the $1,320 level and the trend line. The main support is near $1,300. It is near the 50% Fib retracement level of the upward move from the $1,252 swing low to $1,370 high. A downside break below the $1,300 zone might start a fresh decline to $1,265 in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,320

Major Resistance Level – $1,370

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