Ethereum surged over 10% and it settled nicely above the $400 resistance against the US Dollar. ETH price is consolidating gains and it seems like it could rally further above $420.

• Ethereum gained bullish momentum above the $400 and $410 resistance levels.
• The price traded to a new monthly high at $422 and settled above the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $411 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to surge above $420 unless it starts an extended correction towards $400.

Ethereum Price Holding Uptrend Support

Ethereum gained a strong bullish momentum above the $400 resistance level. ETH price even broke the $410 resistance level and settled well above the 100 hourly simple moving average.

The upward move such that the price even spiked above the $420 resistance. A new monthly high was formed near the $422 level before the price started a downside correction. Ether corrected lower below the $415 level, plus the 23.6% Fib retracement level of the recent surge from the $392 swing low to $422 high.

However, the price is trading nicely above the $410 support level. There is also a major bullish trend line forming with support near $411 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

If there is a break below the trend line support, the price could correct lower towards the $406 support. It is close to the 50% Fib retracement level of the recent surge from the $392 swing low to $422 high.

Conversely, ether price is likely to continue higher above the $415 and $420 resistance levels. A clear break above the $422 high might open the doors for a steady increase towards the $430 and $435 levels in the near term.

Dips Likely Supported in ETH

If Ethereum fails to clear the $420 resistance level, it might continue to correct lower. The first major support is near the trend line and $410.

A downside break below the $410 support level could lead the price towards the $405-406 support zone. The main support is now forming near the $400 level (the recent breakout zone).

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still well above the 50 level.

Major Support Level – $410

Major Resistance Level – $420