Ethereum also started a new rise similar to Bitcoin. According to technical analysis by NewsBTC’s Aayush Jindal, ETH could extend as far as $4,850 unless it fails to stay above the 100 hourly SMA:
- Ethereum started a fresh increase above the $4,600 and $4,700 levels.
- Price is now trading above $4,650 and the 100 hourly simple moving average.
- The pair could extend gains above the $4,800 resistance zone in the near term.
There was a break above a major downtrend line with resistance near $4,630 on the hourly chart of ETH/USD (data from Kraken).
Is Ethereum Targeting Up?
Ethereum started a fresh increase above the $4,600 resistance zone and the 100 hourly simple moving average. There was a break above a major bearish trend line with resistance near $4,630 on the hourly chart of ETH/USD. The pair climbed above the $4,700 level, but it is now facing resistance near the $4,725 level.
ETH is now consolidating gains and is trading around $4,700. It is also 23% of the upward move from $4,520 to $4,725. It is well above the 6 Fib retracement level. An immediate resistance on the upside is near the $4,725 level.
4. The $750 Level Is Important
The next major resistance is near the $4,750 level. According to him, a break above the $4,750 level could trigger a fresh rally. The next key resistance is near the $4,850 level. Any further gains could push the price towards the $5,000 level in the near term.
Will Ethereum Drop?
Jindal says that if Ethereum fails to rise above the $4,725 and $4,750 resistance levels, it may extend its downside correction. An initial support on the downside is near the $4,675 level. The first major support is near the $4,650 level and the 100 hourly SMA. The next major support is near the $4,620 level. This is close to the 50% Fib retracement level of the upward move from the $4,520 low to $4,725 high. Further declines could lead the price towards the $4,550 support. The next major support for the bulls is near the $4,500 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
- Main Support Level – $4,550
- Main Resistance Level – $4.850