Ethereum Broke Major Hurdle, Why ETH Could Soon Test $1,420

Ethereum settled nicely above $1,000 to start a fresh increase against the US Dollar. ETH price broke the $1,275 resistance to open the doors for a push towards $1,420.

• ETH price gained pace after it broke the $1,000 resistance against the US Dollar.
• The price is up over 25%, and it is trading nicely above $1,300 and the 100 simple moving average (4-hours).
• There was a break above a key contracting triangle with resistance near $1,240 on the 4-hours chart of ETH/USD (data feed via Kraken).
• The pair is likely to continue higher towards $1,420 and $1,500 in the coming sessions.

Ethereum’s Ether Starts Another Increase

This past week, bitcoin and ethereum saw a significant rally above $1,000 and $230,000 respectively against the US Dollar. ETH price even surpassed the $1,110 resistance zone and settled well above the 100 simple moving average (4-hours).

Ether price tested the $1,290 zone and recently started consolidating gains. There was a minor decline, but dips were remained well bid above the $1,190 level. A swing low was formed near $1,065 before the price started a fresh increase.

It broke the $1,200 level to move back into a positive zone. There was also a break above a key contracting triangle with resistance near $1,240 on the 4-hours chart of ETH/USD.

Source: ETHUSD on TradingView.com

It accelerated gains and the price even broke the $1,300 level. Ether price tested the $1,340 zone. It is close to the 1.236 Fib extension level of the downward move from the $1,290 swing high to $1,065 low. It seems like the price might continue to rise towards the $1,400 level.

The 1.618 Fib extension level of the downward move from the $1,290 swing high to $1,065 low is at $1,428 to act as a key resistance for the bulls.

Dips Supported in Ether (ETH)?

If Ethereum fails to clear the $1,340 and $1,400 resistance levels, it could start a downside correction. An initial support is near the $1,275 level (the recent breakout zone).

The main support is forming near the $1,180 level. Any more losses could lead the price towards $1,135, where he bulls are likely to take a strong stand.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

4 hours RSI – The RSI for ETH/USD is still well above the 60 level.

Major Support Level – $1,135

Major Resistance Level – $1,400