Ethereum gained momentum and continued to increase its gains. ETH, which is now in a correction, could accelerate further if it makes a clear break above the $4,550 resistance zone, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Increases Earnings
Showing positive signals, Ethereum managed to propel its rise above the $4,350 resistance level. It even broke the $4.440 level and settled well above the 100 hourly simple moving average.
ETH formed a local top near $4.552 and is now correcting higher. It traded below the $4,500 level. 4. 23% of the upside move from $169 to $4,552. There was a break below the 6 Fib retracement level. ETH is currently well above $4,250 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $4,360 on the hourly chart of ETH/USD.
Initial resistance on the upside is near the $4,500 level. The first major resistance is near the $4,550 level. A close above the $4,500 and $4,550 levels could start a fresh increase in the near term. In the indicated case, the price could rally to the $4,620 level. Any more gains could push the price higher towards the $4,750 zone in the near term.
Will Ethereum Drop?
According to Jindal, if Ethereum fails to start a fresh increase above the $4,500 level, it could continue its downside correction. An initial key support is forming near the $4,350 level, the trend line and the 100 hourly simple moving average. The trend line is near the 50% Fib retracement level of the upward move from the $4,169 low to $4,552 high. A downside break below the trendline could lead the price towards the $4,250 support.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now correcting lower towards the 40 level.
- Main Support Level – $4.350
- Main Resistance Level – $4,550
