Ethereum closed above $4,400 and then corrected to a lower level against the US dollar. To start a new rise in the short term, ETH must remain at $4,150.
- Ethereum made a sharp upward turn above the $4.200 and $4.250 resistance levels.
- Now, the price trades above $4,000. The 100-hourly simple moving average is also in play.
- A break was seen above a crucial contracting triangle, with resistance close to $4,310 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- A fresh rally could be initiated if the pair stays above $4,000.
Ethereum price remains supported
Ethereum increased its pace beyond the resistance levels of $4,150 (USD4,000) and USD4,150 (4 USD150). ETH broke even the $4,250 barrier and settled above the 100-hourly simple moving average.
It traded at $4,426 above its original $4,400 price. Now, it is correcting losses and trades below the $4.350 mark. It fell below the 23.6% Fib Retracement level for the recent rise from the $3901 swing low, to the $4,426 peak,
However, bulls were very active around the $4250 level and 100 hourly simple moving mean. The price is currently rising, and it trades above $4,000.
On the hourly chart, ETH/USD saw a breakout above a crucial contracting triangle. Resistance was near $4310. The $4,350 mark is the initial resistance. Near the $4,400 mark is the first significant resistance. Next is the $4,520 barrier.
Source: TradingView.com, ETHUSD
The price could rise further if it moves above $4,420. This scenario could lead to a price drift toward the $4,550 mark in the immediate future.
Dips Limited to ETH
It could prolong its downward correction if ethereum does not start an increase above $4,350. The $4,300 mark is the initial support for the downside. Key support now appears to be near the $4250 level and the 100 hourly simplemoving average.
The price may lose more if it breaks below $4,250. Next major support level is $4.150, or 50% Fib Retracement Level of recent rise from $3,901 swing low, to $4,426 high. Below which price may decline towards $4,000.
Technical Indicators
Hourly MACD – In the bullish zone, MACD is increasing in pace for USD/ETH.
Hourly RSI – The RSI of ETH/USD has risen to well over the 50 mark.
Major Support Level – $4,250
Major Resistance Level – $4,400
