- Ethereum resumed the bullish momentum from the support at $420 but stalled at $440.
- Ethereum could easily rise above $450, especially if the hurdle at $440 is removed.
- Losses back to $380 cannot be ruled out now that a double-top pattern is in the picture.
Ethereum price has had an interesting trading session in the last few days but mainly over the weekend. In addition to correcting a couple of dips to $380 experienced last week, Ethereum staged yet another flight above $400. This time, gains above $400 have proved to be sustainable. ETH/USD hit a wall at $430 at first. Support was embraced at $420 before the crypto bounced upwards breaking above the stubborn resistance at $430.
ETH/USD bulls extended the bullish leg towards $440 but stalled within a whisker of $440. At the time of writing, the second-largest cryptocurrency is trading at $438. The main focus is to clear the hurdle at $440m therefore, buyers have a task to ensure that the price stays closer to $440, hence averting possible losses eyeing $430.
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ETH/USD 4-hour chart
Meanwhile, the technical picture is bullish, especially when the Relative Strength Index (RSI) is considered. The indicator currently holds around at 70. Movements into the overbought region are limited, in a way, reflecting the stalling under $440.
The Moving Average Convergence Divergence (MACD) has maintained a positive divergence above the midline. A bullish divergence above the MACD suggests that buyers have the upper hand.
In other words, Ethereum is poised for more upward action above $440. However, the formation of a double-top pattern signals to the traders that a reversal is likely to sweep in, especially if the resistance at $440 remains intact. In the case of a reversal, the chance of Ethereum holding above $400 would be slim. The bearish leg could easily extend to $380 and $370 before another reversal occurs. Note that, ETH can also trend higher, even break above $450 if the resistance at $440 is overcome.
Related reading: Ethereum Co-Founder, Vitalik, Disagrees with Prolonging of High-Fees
Ethereum Intraday Levels
Spot rate: $438
Relative change: 2.70
Percentage change: 0.71