TA: Ethereum Regains Strength, Why Bulls Could Aim $4,500
Ethereum gained pace above the $4,250 resistance against the US Dollar. ETH could accelerate higher if there is a clear break above the $4,400 resistance zone.
- Ethereum is trading in a bullish zone above the $4,250 level.
- The price is now well above $4,250 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $4,070 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue higher if it stays above the $4,250 support level in the near term.
Ethereum Price Starts Recovery
Ethereum extended its decline below the $4,120 level. ETH tested the $4,000 support zone and recently started a steady recovery wave. There was a break above the $4,120 and $4,150 resistance levels.
The bulls pumped the price above the 50% Fib retracement level of the downward move from the $4,552 swing high to $3,920 low. Besides, there was a break above a key bearish trend line with resistance near $4,070 on the hourly chart of ETH/USD.
Ether price is now well above $4,250 and the 100 hourly simple moving average. An initial resistance on the upside is near the $4,380 level. The first major resistance is near the $4,400 level.
Source: ETHUSD on TradingView.com
The 76.4% Fib retracement level of the downward move from the $4,552 swing high to $3,920 low is also near the $4,400 level. A close above the $4,380 and $4,400 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,500 level. Any more gains could lift the price towards the $4,550 zone in the near term.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,400 level, it could extend its downside correction. An initial support on the downside is near the $4,250 level.
The first key support is now forming near the $4,200 level and the 100 hourly simple moving average. A downside break below the $4,200 support zone could spark a sharp decline. In the stated case, the price is likely to revisit the $4,000 support zone in the coming sessions.
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now correcting lower towards the 60 level.
Major Support Level – $4,250
Major Resistance Level – $4,400