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Ethereum Smashed Heavy Resistance, Preparing To Surpass $450

11/06/2020

Ethereum smashed heavy resistance at $405 and $410 and now prepares to start a fresh rally following Bitcoin’s price surge against the US dollar. ETH price is about to continue higher towards $450 as we are reading more in the latest Ethereum news.

Ethereum is up by 6% and it broke the key $420 resistance level with the price now trading above $425 and the 100 hourly simple moving average. There’s a major bullish trend line forming with support at $420 on the hourly charts of the pair. the pair could even correct lower but the $420 support zone is likely to protect the losses. After forming a support base above the $400 level, Ethereum started a strong upward movement so the price even broke the $410 resistance level to move into a positive zone and to start the recent rally.

eth/usd
Source ETHUSD on TradingView.com

The price gained bullish momentum and surged above the $420 resistance level. The upward movement was such that the ETH price spiked above $440 and settled well above the 100 hourly simple moving average. The new monthly high is formed near $442 and the price is now correcting lower. ETH is trading below the $435 support plus is traded below the $23.6% fib retracement of the rally at $407 swing low to $422 while on the downside, many supports started with $424.

The 50% fib retracement level from the rally at $407 swing low to $442 high was near the $424 to provide more support. There’s also a major bullish trend line forming with support near the $420 on the hourly charts of the pair. on the upside, the $435 level is the initial resistance and the first major hurdle is near the $440 above which the price could test $450. Further gains could lead the price towards the $460 resistance. If ethereum fails to clear the $435 and the $440 resistance levels, it could correct lower so the first major support on the downside is near the $424 level.

eth price action
Charts of ETH’s price action over the past few months with analysis by crypto trader Cactus (@TheCryptoCactus on Twitter).

The main breakdown support is forming near the trend line of $420 while the Ether price broke the trend line support and it could continue to move to the $400 support zone or the 100 hourly simple moving average. The MACD for the pair is slowly losing momentum in the bullish zone while the hourly RSI for the pair is above the 60 levels.