Key Highlights
- ETH price corrected lower this past week towards $255 against the US Dollar, but later it recovered very well.
- There is a crucial bullish trend line with support at $310 forming on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- It looks like the price is about to retest $390 and may even attempt a break above $400.
Ethereum price correction was a good thing against the US Dollar and Bitcoin, and now ETH/USD is back in the bullish zone for a break above $400.
Ethereum Price Slowly Grinding Higher
In the last weekly analysis, we discussed the possibility of ETH price moving past the $350 level against the US Dollar. It did remain in the bullish zone and moved above $350, but later started a correction. A high was formed at $404 from where a correction phase was initiated. The price moved down sharply and traded lower by roughly $150. It traded below $300 to trade as low as $256 where buyers appeared.
A strong buying interest protected further declines below $256. There was also no close below the 100 simple moving average at $280. Moreover, a crucial bullish trend line with support at $310 on the 4-hours chart of ETH/USD acted as a support. It acted as a barrier, and as a result, the price moved back above $300. Buyers were successful in taking the price back above the 50% Fib retracement level of the last decline from the $404 high to $256 low.
At the moment, the price is slowly and steadily moving higher with supports as $345 and $310. A break above the 76.4% Fib retracement level of the last decline from the $404 high to $256 low is needed for ETH to retest $400. If buyers remain in control, there is a chance of a break above $400 as well.
4-hours MACD – The MACD is back in the bullish zone.
4-hours RSI – The RSI is heading higher and currently above 50.
Major Support Level – $345.00
Major Resistance Level – $400.00
Charts courtesy – SimpleFX