Thursday, February 25, 2021

Ethereum (ETH) Indicating Bullish Breakout, Why a Rally above $1,400 Is Likely

After forming a support base above $1,280, Ethereum (ETH) started a fresh upward move. ETH price surpassed the $1,300 and $1,320 resistance levels to move into a positive zone.

There was also a break above a major bearish trend line with resistance near $1,325 on the hourly chart of ETH/USD. It opened the doors for a steady rise above the $1,350 level and the 100 hourly simple moving average.

Read Also: Grayscale Lawyer: XRP Should Have Been Classified as a Non-Security Along With Ethereum (ETH)

ETH price traded close to the $1,400 resistance and a high is formed near $1,389. The price is currently correcting lower below $1,380. It already tested the 23.6% Fib retracement level of the recent upward move from the $1,300 swing low to $1,389 high.

On the downside, there is a major support forming near the $1,340 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent upward move from the $1,300 swing low to $1,389 high.

Ethereum (ETH) Indicating Bullish Breakout, Why a Rally above $1,400 Is Likely

Source: ETHUSD on TradingView.com

On the upside, the $1,390 and $1,400 levels are initial hurdles. The current price action suggests high chances of an upside break above the $1,400 resistance. In the stated case, the price could easily drift towards the $1,450 and $1,480 levels. The next major resistance is near the $1,500 level.

Possibility of a Fresh Dip in the Price of Ethereum (ETH)

If Ethereum (ETH) fails to clear the $1,390 and $1,400 resistance levels, it could correct lower. As mentioned, there is a strong support forming near the $1,340 level and the 100 hourly simple moving average.

Read Also: Crypto Michael Predicts How High BTC, ETH, ADA, DOT Can Go In This Bull Cycle

If ether price fails to stay above the $1,340 support, there is a risk of a drop towards the $1,320 support zone and the broken trend line. At press time, ETH is trading at $1,385.28, with about a 5% price uptrend in the last 24 hours.


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Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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