Ethereum Remains Supported, What Could Spark Fresh Rally
Ethereum traded above $4,400 before correcting lower against the US Dollar. ETH must stay above $4,150 to start a fresh increase in the near term.
- Ethereum started a fresh upward move above the $4,200 and $4,250 resistance levels.
- The price is now trading above $4,200 and the 100 hourly simple moving average.
- There was a break above a key contracting triangle with resistance near $4,310 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh rally if it stays above $4,200 and the 100 hourly SMA.
Ethereum Price Remains Supported
Ethereum gained pace above the $4,000 and $4,150 resistance levels. ETH even broke the $4,250 level and settled well above the 100 hourly simple moving average.
The price climbed above $4,400 and traded as high as $4,426. It is now correcting gains and traded below the $4,350 level. Ether price declined below the 23.6% Fib retracement level of the recent increase from the $3,901 swing low to $4,426 high.
However, the bulls were active near the $4,250 level and the 100 hourly simple moving average. It is now rising and trading above $4,300.
There was a break above a key contracting triangle with resistance near $4,310 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,350 level. The first major resistance is near the $4,400 level. The next major hurdle is near the $4,520 level.
Source: ETHUSD on TradingView.com
A clear move above the $4,420 could send the price further higher. In the stated case, the price could drift towards the $4,550 level in the near term.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,350 level, it could extend its downside correction. An initial support on the downside is near the $4,300 level. The key support is now forming near the $4,250 level and the 100 hourly simple moving average.
If there is a clear break below the $4,250 support, the price could extend losses. The next major breakdown support is $4,150 or the 50% Fib retracement level of the recent increase from the $3,901 swing low to $4,426 high, below which the price could decline towards $4,000.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $4,250
Major Resistance Level – $4,400