Ethereum Lacks Momentum Above $4,200, But Dips Likely To Be Limited
Ethereum is facing resistance near the $4,250 zone against the US Dollar. ETH must stay above $4,000 to start a steady increase in the near term.
- Ethereum started a recovery wave after a major drop below $4,000.
- The price is now trading below $4,250 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $4,150 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh rally if there is a clear break above $4,250 and the 100 hourly SMA.
Ethereum Price Recovers Losses
Ethereum started a major decline after it broke the $4,250 support. ETH broke the $4,000 and $3,800 support levels. It traded as low as $3,327 and recently started an upside correction.
There was a break above the $3,800 and $4,000 resistance levels. Ether price even climbed above the 50% Fib retracement level of the recent drop from the $4,662 swing high to $3,327 low. However, it is still trading below $4,250 and the 100 hourly simple moving average.
Besides, there is a key bullish trend line forming with support near $4,150 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,200 level. The first major resistance is near the $4,250 level.
The next major hurdle is near the $4,350 level. It is near the 76.4% Fib retracement level of the recent drop from the $4,662 swing high to $3,327 low.
Source: ETHUSD on TradingView.com
A clear move above the $4,250 and $4,350 levels could send the price further higher. The next major resistance is near the $4,500 level. Any more gains could lift the price towards the $4,650 resistance zone in the near term.
Fresh Drop in ETH?
If ethereum fails to start a fresh increase above the $4,250 level, it could start another decline. An initial support on the downside is near the $4,150 level and the trend line.
A downside break below the $4,150 support zone might start a steady decline. In the stated case, the price may perhaps decline towards the $4,000 level. The next major breakdown support is $3,820, below which the price could decline towards $3,650.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $4,150
Major Resistance Level – $4,250