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Analysis

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.

Ethereum Price

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.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now correcting lower towards the 60 level.

Major Support Level – $4,250

Major Resistance Level – $4,400

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