- ETH/USD reaches a make or break level after flipping the $400 resistance
- Ethereum price firmly surmounted the $400 level for the first time recent weeks
- ETH price must move past the $405 level to avoid a huge drawback
Ethereum News Today – the price of Ether has firmly moved past the $400 area for the first time in recent weeks. At press time buyers are attempting to flip the level into a support position. The latest upswing price action for the digital asset has allowed Ethereum to outperform Bitcoin and the bulk of the other major digital assets significantly.
Analysts are noting that the digital currency has reached a decision point. The coins’ near-term outlook is likely going to be determined by the way it reacts to the $405 resistance area. Hence, the key reason a support-resistance flip of the $380 area could be enough to take the price of ETH significantly higher. At least this is the view of one analyst who noted that such a move could result in a rise in buying pressure.
Ethereum is Staying Strong After Breaking Above the $400 Area
As of when this content was published, the Ethereum price was trading higher by 2% at $403. This position is around the upper point of the trading pattern that the digital asset has been caught recently. It is paramount to note that while the crypto has struggled to maintain a foothold above the $400 area on many occasions recently, the strong reaction to ETH’s move to the $380 support level appears to have reinvigorated the bulls. One analyst has noted watching for the $400 area to be confirmed as support. A flip of this level from the previous resistance could be what ETH needs to see further upward movement.
“ETH/USD appears to be going through the support level at $380. This area was supported once more and buyers have continued to step in even though the coin bounced above the $400 area briefly. $400 still is a key resistance area for now. We expect a pullback to the $390 area before a flip at $400.”
ETH/USD Must Break $405 to Avoid A Significant Drop
Another digital asset analyst also stressed that the $405 level serves as a significant near-term resistance area for Ether. He also agrees that failure for the coin to break this area could ETH/USD to see a significant near-term downward movement. This could potentially guide the coin down to as low as the $320 area. In his words:
“There’s a good movement for ETH/USD right into the $405 area. Somewhere around this position is the huge decision area in my opinion. Narrative based but I don’t like that this price action has been attained at the weekend.”