Ethereum gained support close to $4,065 in order to begin a rally against the US Dollar. If ETH breaks above $4,350, it could go higher.
- Ethereum has started to recover from its $4,065 support zone.
- Now, the price trades above $4250. The 100-hourly simple moving average is also in play.
- Support is near $4,240 in ETH/USD’s hourly chart (data feed via Kraken).
- A break below $4.240 or $4.200 could trigger a new downturn.
Ethereum price has more downsides
Ethereum gained support above $4,000.50 and initiated an upside correction similar to Bitcoin. To initiate a recovery wave, ETH prices climbed higher than the resistance levels of $4,150 or $4,200.
The Fib retracement level at which the main decline was from $4,730 to $4,067 occurred above 23.6%. The Ether price now trades above $4,250 as well as the 100-hourly simple moving average. On the hourly chart for ETH/USD, there is a rising channel with support at $4,240.
The $4,300 mark is the first resistance to the upside. Near the $4,350 mark is the first significant resistance. This could signal a breakout near the $4,000. level or the simple 100-hour moving average.
Source: TradingView.com ETHUSD
Also, the Fib retracement of 50% the major decline between the $4.730 high and the $4.067 low, is near the $4.420 zone. In the short term, a close above the $4.400 or $4.420 levels may signal a new increase. The price could rise to $4,550 in the above scenario. Price could rise to $4,650 if there are more gains.
New Decline in the ETH
Ethereum could see a sharp decline if the resistance levels of $4,350/4,400 are not crossed. The $4,250 mark is the initial support for the downside.
Near the $4,240 mark is currently the first support. Price could slide further below the channel trendline and support level of $4,240. Below that, the price may slide toward the $4.065 level.
Technical Indicators
Hourly MACD – The MACD is falling in bullish territory for USD/ETH.
Hourly RSI – The RSI is currently falling towards the 50 mark for ETH/USD.
Major Support Level – $4,240
Major Resistance Level – $4,350
