Ethereum remains positive and is trading in a bullish zone above $4,200. According to technical analysis by NewsBTC’s Aayush Jindal, if it clears $4,350 and $4,400 it could start a new rally:
- Ethereum is gaining above the $4,100 and $4,200 support levels.
- Price is now trading above $4,200 and the 100 hourly simple moving average.
- The pair could start a fresh rally if it breaks the $4,400 resistance in the near term.
There is a major contracting triangle forming with support near $4,220 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Continues to Find Support
ETH started a fresh increase above the $4,200 resistance zone and the 100 hourly simple moving average. The price climbed above $4,300 but it is facing resistance near $4,400. A local top was formed near $4.380 and the price is now correcting gains.
ETH is currently gaining above the $4,200 level and the 100 hourly SMA. There is also a major contracting triangle forming with support near $4,220 on the hourly chart of ETH/USD.
An immediate upside resistance is near the $4,350 level and the contracting triangle pattern on the same chart. The next major resistance is near the $4,400 level. A break above the $4,400 level could push the price above the $4,450 level in the near term. Any further gains could lead the price towards the $4,550 level.
Will Ethereum Drop?
According to Jindal, if Ethereum fails to rise above the $4,350 and $4,400 resistance levels, it could start a downside correction. An initial support on the downside is near the $4,300 level. The first major support is near the $4,250 level. This is close to the 50% Fib retracement level of the upward move from the $4,152 high to $4,380 high. The main support is near the $4,200 level. Further declines could lead the price towards the $4.120 support. The next major support for the bulls is near the $4,000 level, below which there is a risk of a larger decline.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Main Support Level – $4,200
- Main Resistance Level – $4,400