- Ethereum breaks out above $400 during the weekend session but hits a barrier at $430.
- ETH/USD bullish case to $500 will depend on the bulls’ effort to defend $420 initial support in the near term.
Ethereum has impressively extended the bullish leg above $400. The price action has been significant enough to disapprove all negative predictions in the mainstream media. Last week, Ethereum tumbled to $370 twice. The first recovery hit a wall marginally above $410. On other hand, trading before the weekend session was mainly lethargic as discussed with Ether holding above $380 and unable to overcome the hurdles at $390 and $400 respectively.
However, the impressive trading action over the weekend pulled ETH/USD not only above $400 but also $420. The price brushed shoulders with $430 before falling slightly to seek balance at $425. At the time of writing, Ethereum has a market value of $425.74.
Sideways trading appears to be the dominant trend as reflected by both the RSI and the MACD. Both indicators have abandoned the majestic weekend action to higher levels and currently hold above key levels. For instance, the RSI is moving horizontally at 70 (overbought) while the MACD is holding the ground at 5.94. As for MACD, there is a minor bullish divergence above it that puts emphasis on ETH’s bullish case to levels above $430.
The battle for gains above the 2020 high at $447 and towards the coveted $500 depends on the bulls’ ability to hold $420 as a primary support. The overbought levels highlighted by the RSI (at least in the short term range) must also be ignored in favor of the great prize of trading past $500.
For now, buyers remain in control despite them not attracting enough volume for sustained gains beyond $300. Their influence over the price is reflected by the wide gap the 50 SMA is making above the longer term 200 SMA.
ETH/USD 1-hour chart
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