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.
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.
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.
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.