Ethereum rallied more than 5% and it broke the key $370 resistance against the US Dollar. ETH price is struggling to clear the $390 resistance and it is currently correcting lower.

• Ethereum started a strong increase after forming a key double bottom pattern near $355.
• The price is up over 5% and it surpassed the $370 barrier and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to remain well supported near the $370 support and the 100 hourly SMA.

Ethereum Price Turns Green

Yesterday, we discussed a possible double bottom pattern for Ethereum near $355. ETH price did follow a bullish path and broke a couple of important resistances near the $370 level.

There was also a close above the $370 level and the 100 hourly simple moving average. More importantly, there was a break above a major bearish trend line with resistance near $372 on the hourly chart of ETH/USD. Ether price is up over 5% and it tested the next important resistance near the $385 zone. A high is formed near $385 and the price is currently correcting lower. It broke the $380 level and the 23.6% Fib retracement level of the upward move from the $355 low to $385 high. On the downside, the price is likely to find a strong support near the broken trend line and $370. The 50% Fib retracement level of the upward move from the $355 low to $385 high is also active near $370 along with the 100 hourly simple moving average.

Ethereum price trades above $370. Source: 

If ether stays above the $370 support and the 100 hourly simple moving average, there are chances of a fresh increase. An initial resistance is near the $385 level. The first major resistance is near the $390 level.

A successful close above the $390 resistance might start a steady rise towards the $400 barrier. Any further gains could lead the price towards the $420 resistance in the near term.

Fresh Decline in ETH?

If Ethereum fails to clear the $385 and $390 resistance levels, there is a risk of a downside break. The main support is near the $370 level and the 100 hourly SMA. A proper break below the $370 support zone could put a lot of pressure on the bulls and the price might decline towards the next major support at $355. Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently well above the 60 level.

Major Support Level – $370 Major Resistance Level – $390