Ethereum Lacks Momentum Above $4,200, But Dips Likely To Be Limited

Ethereum has been facing resistance against the US Dollar at $4,250. To maintain a steady rise in Ethereum’s value, it must remain at least $4,000

  • After a significant drop to below $4,000, Ethereum began a wave of recovery.
  • The current price trades below $4,250 as well as the simple 100-hour moving average.
  • On the hourly chart for ETH/USD, there is support close to $4,150. This trend line forms as a bullish indicator (data feed via Kraken).
  • A clear break of $4,250 above the 100-hourly SMA could trigger a rally.

Ethereum Price Recouvres All Losses

After breaking the $4,250 support level, Ethereum began a significant decline. ETH reached the $4,000-$3,800 support levels. It was trading as low at $3,327 before it began an uptrend.

A break occurred above the $4,000 and $3,800 resistance levels. Even higher than the 50% Fib Retracement level, Ether prices climbed from the $3,662 swing low to the $3,327 high. But, it trades below the $4,250 level and the 100 hourly simple moving mean.

A key bullish trendline is also forming near support of $4,150 in the hourly chart. The $4,200 mark is the first resistance. Near the $4,250 mark is the first significant resistance.

Near the $4,350 mark is the next hurdle. This is close to the 76.4% Fib Retracement Level of the recent fall from $4,662 swing high, to $3,327 lowest.

Ethereum Price

Source: ETHUSD

Price could move higher if the price moves clear above the $4.250 and $4.350 levels. Near the $4,500 mark is the next significant resistance. The price could rise towards $4,650 if there are more gains.

New Drop in Ethereum?

Ethereum could experience another drop if it fails to increase above the $4250 level. Support for the downside lies near the trend line at $4,150 and the level of $4,150.

If the price falls below the $4150 support level, it could signal a gradual decline. If this happens, then the price might drop towards the $4,000 mark. Price could drop to $3,650 below the $3,820 major breakdown support.

Technical indicators

Minutely MACDThe bullish zone is seeing a rapid increase in MACDs for ETH/USD.

Hourly RSIThe RSI is well over 50 for USD/ETH.

Major Support Level – $4,150

Major Resistance Level – $4,250

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