Ethereum Corrects Sharply, What Could Spark Fresh Increase

Ethereum began a downtrend below $4700 against the US dollar. ETH is currently recovering but must surpass $4,720 in order to see a new increase.

  • Ethereum experienced a downturn below the $4.750 and $4.650 levels.
  • The stock price currently trades at $4,700.
  • A break was seen below a bullish trend line, with support close to $4720 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • If the pair remains above $4,500 support level, it could begin a new increase.

Ethereum Price Sees A Fresh Increase

The Ethereum price failed to reach the $4,700 mark and began a new decline. To move into a bearish short-term zone, ETH prices fell below $4650.

Also, the hourly moving average and $4550 were broken. The bulls were still close to the $4,450 support area. On the hourly chart of Ethereum/USD, it was noted that there was an undercutting of a bullish trend line, with support close to $4,720.

The pair has now recovered its losses after a low was formed at $4,452. It has cleared the $4,000.00 resistance zone. Ether trades at 23.6% Fib, which is the level of the recent fall from $4.866 high to $4.452 low. The $4,660 mark is the initial resistance.

Near the $4660 level is the 50% Fib level. This is the level at which the decline from $4,866 to $4,452 was retraced. Also, the 100-hourly SMA is close to $4,680. Near the $4,700 mark is the next significant resistance.

Ethereum Price

Source: TradingView.com ETHUSD

An increase of more than $4,700 in the near-term could cause a dramatic rise. If this is the case, then the price may rise to the $4,850 mark. Additional gains may push the price higher towards $5,000, the next major hurdle.

Dips Limited to ETH

If the resistance levels of $4,660-4,700 are not reached, ethereum could experience a sharp correction. Near the $4,500 support level is an initial support.

Now, the price is near $4,450 and it’s the lowest since the low of last week. The price could fall below $4,450 if it breaks below that support. Next is $4,200.

Technical Indicators

MACD HourlyIn the bearish zone, the MACD of ETH/USD has been losing momentum.

Hourly RSIThe RSI is close to 50 for USD/ETH.

Major Support Level – $4,450

Major Resistance Level – $4,700

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