Ethereum gained pace and broke the $1,320 resistance against the US Dollar. ETH is showing positive signs and might surge above the $1,400 resistance.

• Ethereum started a steady increase above the $1,320 and $1,330 levels.
• The price is now trading above $1,300 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $1,320 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could rally before bitcoin if it stays above the $1,300 pivot zone.

Ethereum Price Gains Strength

Ethereum remained well bid above the $1,265 level and started a steady increase. ETH was able to clear the $1,290 and $1,300 levels to move into a positive zone.

The price gained nearly 5% and there was a break above the $1,320 resistance zone. Ether price even climbed above the $1,350 level and settled above the 100 hourly simple moving average. It traded as high as $1,370 and recently started a downside correction.

The price is now moving lower towards the $1,340 zone. It is close to the 23.6% Fib retracement level of the upward move from the $1,252 swing low to $1,370 high. There is also a major bullish trend line forming with support near $1,320 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $1,370 level. The first major resistance is near the $1,390 and $1,400 levels. A clear upside break above the $1,400 resistance zone could open the doors for a strong increase. In the stated case, the price might rise towards the $1,500 level.

Dips Limited in ETH?

If ethereum fails to climb above the $1,400 resistance, it could start a downside correction. An initial support on the downside is near the $1,340 level.

The next major support is near the $1,320 level and the trend line. The main support is near $1,300. It is near the 50% Fib retracement level of the upward move from the $1,252 swing low to $1,370 high. A downside break below the $1,300 zone might start a fresh decline to $1,265 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

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

Major Support Level – $1,320

Major Resistance Level – $1,370

Cardano’s [ADA] recent drop from the $0.66-level crystallized in a down-channel on the daily timeframe. The EMA ribbons coordinated with the 38.2% Fibonacci resistance to constrict the buying efforts over the last month.

The coin could provoke a favorable selling opportunity should the bears inflict a reversal from the $0.51-mark. At press time, ADA traded at $0.4995, up by nearly 3.25% in the last 24 hours.

ADA Daily Chart

As the price action plunged below the EMA ribbons, the immediate narrative for the altcoin took a bearish flip. The down-channel oscillation halted near the Point of Control (POC, red) that remarked a stiff tussle between the buyers and sellers.

The gains over the last ten days have aided the buyers in breaking out of the long-term down-channel. Also, ADA saw a rising-wedge-like structure approaching the 38.2% Fibonacci resistance.

For over 100 days, the price action has been struggling to breach the upper boundary of the EMA ribbons. Any break above this level would position the alt to bag in near-term gains. In this case, the potential targets would rest in the $0.57-zone.

However, any pullback from the immediate hurdles could extend the squeeze phase in the coming sessions. This trajectory could provoke a reversal toward the $0.45-zone.

Rationale

The Relative Strength Index took a bullish stance while aiming to break above the 56-level. A breach above this resistance could aid the near-term buying pressure.

Further, the MACD line saw a close above the zero-mark and affirmed ease in the selling vigor. A continued sway above the equilibrium could invalidate the bearish tendencies.

Also, the Directional Movement Index (DMI) reaffirmed the bullish strength. But the ADX of ADA revealed a substantially weak directional trend.

Conclusion

With the current pattern approaching the 38.2% level and the EMA ribbons, ADA could carry a downside risk. The targets would remain the same as above. A close above $0.515 would invalidate these bearish inclinations.

Finally, traders/investors should keep a close watch on Bitcoin’s movement and its effects on the wider market to make a profitable move.