- Ethereum comes back stronger after the weekend dip to $380.
- The bullish case to highs above $420 depends on Ether’s ability to sustain gains after the descending resistance is shattered.
Ethereum revisited support at $380 on Saturday following an extended breakdown under $400. The rest of the weekend trading remained mundane with attempts to break above $400 falling short again and again. Ether has already climbed to highs above $390 at the time of writing and trading at $393. The cryptoasset’s immediate upside is limited by a descending trendline resistance.
The same trendline resistance, if shattered could open the way for gains above $400. Hurdles likely to delay the bulls’ push to $420 critical level range from the 50 SMA at $399.10 in the 2-hour range, $400, the 200 SMA at $405 as well as $410.
Despite the above seller congestion zone being in the way, Ethereum technicals paint quite a positive picture in the near term. For instance, the RSI is just about to cross above the midline (50). The building bullish momentum is also supported by the Elliot Wave Oscillator as it prints a bullish session below the mean line (0.00).
Traders can watch the EWO because if it crosses above the midline, Ethereum’s bullish will strengthen, making it easier to take down the resistances mentioned for a smooth sail above $420. In addition, the strength of the price action to $420 will depend on bulls’ ability to sustain gains above the descending trendline resistance.
On the downside, support is envisioned at $390 and $380 respectively. Extended losses will have bulls looking forward to the support at $370 and $360 as well. However, for now, consolidation is likely to take precedence before buyers build the threshold speed for the flight to $420 and beyond.