This Simple Breakout Pattern Could Resend Ethereum Price Above $400

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Ethereum dived from the $417 swing high and traded below $350 against the US Dollar. ETH price is currently recovering above $375 and it is likely to climb back above $400.

  • Ethereum started a sharp decline from the $417 high and dived towards the $300 support.
  • The price recovered sharply above $350 and it is now trading above the 100 hourly simple moving average.
  • There is a key contracting triangle forming with resistance near $385 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair seems to be setting up for a fresh bullish break above $390 and $400.

Ethereum Price Is Approaching Next Break

After a strong rally above $350 and $400, Ethereum faced a significant bearish move against the US Dollar. A high was formed near $417 before the price tumbled (similar to bitcoin and ripple) below $400 and $350.

The price even spiked below the $330 support level and the 100 hourly simple moving average. However, it found a strong buying interest near $305 and $300. Ether recovered sharply above the $330 and $350 levels.

There was a break above the $365 and $370 levels. The price is now trading near the $385 resistance zone. It is close to the 50% Fib retracement level of the recent decline from the $416 swing high to $353 swing low. It seems like there is a key contracting triangle forming with resistance near $385 on the hourly chart of ETH/USD.

Ethereum Price

Ethereum price trades above $380. Source: TradingView.com

If ether price breaks the triangle resistance, it could test the $390 resistance. The 61.8% Fib retracement level of the recent decline from the $416 swing high to $353 swing low is also near the $392 level.

A successful break above the triangle resistance and $392 could open the doors for a fresh increase above the $400 level. In the mentioned case, the price is likely to rise towards the $415 and $420 levels in the coming sessions.

Dips Likely To Be Contained in ETH

The triangle support is near the $378 level. If there is a bearish break below the triangle support, Ethereum could test the $365 support.

The next major support is near the $360 level and the 100 hourly SMA, where the bulls are likely to take a strong stand. Any further losses could lead the price towards the $300 handle.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving in the bullish zone.

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

Major Support Level – $365

Major Resistance Level – $392

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