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

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Ethereum has settled well above $ 1,000 to start a fresh surge against the US dollar. ETH price broke the $ 1,275 resistance to open the doors for a push towards $ 1,420.

  • ETH price picked up pace after breaking the $ 1,000 resistance against the US dollar.
  • The price is up over 25% and is trading well above $ 1,300 and the simple moving average of 100 (4 hours).
  • There was a break above a major contraction triangle with resistance near USD 1,240 on the ETH / USD 4-hour chart (data feed via Kraken).
  • The pair is likely to continue rising towards $ 1,420 and $ 1,500 in the upcoming sessions.

The ether of Ethereum starts another surge

Over the past week, Bitcoin and Ethereum rallied sharply against the US dollar, over $ 1,000 and $ 230,000 respectively. The ETH price even surpassed the USD 1,110 resistance zone and was well above the simple moving average of 100 (4 hours).

Ether price tested the $ 1,290 zone and recently began consolidating gains. There was a slight decline, but the slump stayed well above the $ 1,190 level. A swing low was formed near $ 1,065 before the price rose again.

It broke the $ 1,200 level to return to a positive zone. There was also a break above a major contraction triangle with resistance near USD 1,240 on the ETH / USD 4 hour chart.

Source: ETHUSD on TradingView.com

It accelerated profits and the price even surpassed 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 high of $ 1,290 to the low of $ 1,065. It seems like the price will continue to climb to the $ 1,400 level.

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

Dips supported in Ether (ETH)?

If Ethereum fails to hit the USD 1,340 and USD 1,400 resistance levels, a downward correction can be initiated. Initial support is near the USD 1,275 level (the most recent breakout zone).

The main support is forming near the USD 1,180 level. Further losses could move the price towards $ 1,135 where the bulls are likely to take a strong position.

Technical indicators

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

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

Main support tier – $ 1,135

Main Resistance Level – $ 1,400