Ethereum price analysis: ETH/USD breaks above $400.00; fundamentals remain adverse

Ethereum pokes above the key technical level, but the momentum is weak.
Internal developer quarrels haunt the coin, making sustainable bullish run less likely.

Ethereum price moves above the critical threshold $400.00 amid general recovery on the cryptocurrency market. While the move may be interpreted as a bullish signal, the coin needs a daily close above this level to prove that the upside momentum is sustainable. The next bullish target is seen at $420.00 and followed by $440.00.

Ethereum lost over 50% of its value n March, though it is still 800% higher than 12 months ago. ETH recent underperformance is caused by the global crackdown on ICOs that are mostly based on Ethereum blockchain. Apart from that, the digital token is plagued by internal problems that may eventually lead to a series of hard forks.

The splits among the community of ETH developers are numerous: some of them wants to allow reversing erroneous or fraudulent transactions, while others stand against upcoming ASIC rigs for ETH mining.

Ethereum technical picture

ETH/USD is now trading at $402.67, above both 50 and 100-SMA on the hourly interval, the price got above $400 handle, but the breakout failed to trigger more buying, which means that the momentum is weak The bulls have to push the price above $420.00 and possibly $440.00 to prove that they are serious. On the downside, the local support comes at $370; a move below will open the way to Sunday's low at $358.80 and by the critical $320.00-$300.00 area.

ETH/USD, the hourly chart

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