Ethereum Price Prediction: ETH/USD flight to $500 hits take off speed

Ethereum price hit new yearly highs once again, drawing closer to $450. The cryptocurrency market turned massively bullish on Monday during the American session. The broad-based gains were mainly triggered by Bitcoin’s surge to new yearly highs around $12,492. Ethereum followed suit with gains breaking above two stubborn resistance at $430 and $440 respectively. The bullish leg although targeting highs around $500, hit a wall at $447 (new yearly).

ETH/USD has caved into selling pressure, probably due to investors and traders taking profits. Intriguingly, support has been embraced at $430 with eyes still glued on $500 and breaking above the seller congestion at $440 and $450 respectively.

Meanwhile, the technical picture is turning bearish gradually as seen with the RSI as it falls under the midline (50). The Same downward momentum is highlighted by the Elliot Wave Oscillator; printing a bearish session.

It is essential to note that the support at $430 is aided by a confluence formed by the 50 SMA and the 100 SMA in the 1-hour timeframe. In addition, a descending channel is in line to prove the much-needed support. If this support is defended, bulls will have the opportunity to concentrate on overcoming the resistance at $440, $450 and $500.

On the downside, lower support is envisioned at $420 in the event declines extend below $430. Glancing towards $400, other key support levels to keep in mind are the 61.8% Fibonacci retracement level taken between the last swing high of $447.82 to swing low of $364.94 and $410.

ETH/USD 1-hour chart