Ethereum gained momentum above the $4,550 resistance and is now trading above $4,700. According to technical analysis by NewsBTC’s Aayush Jindal, it could accelerate further in the short term.
Ethereum Rebounds
Ethereum remained stable above the $4,500 level and then started a fresh increase. There was a clear break above the $4.650 level and the 100 hourly simple moving average. Besides, there was a break above a major ascending channel with resistance near $4,560 on the hourly chart of ETH/USD.
The pair climbed to a multi-week high above the $4,700 level. It rallied as high as $4.774 and it is currently in a correction. 23% of the upside move from $4,352 to $4,774. It is trading above the 6 Fib retracement level.
A New Record Coming?
An initial resistance on the upside is near the $4,775 level. The first major resistance is near the $4,800 level. A close above the $4,775 and $4,800 levels could start a fresh increase in the near term. In the stated case, the price could rise to the $5,000 level. Any further gains could push the price higher towards the $5,200 region in the near term.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $4,800 level, it could start a downside correction. According to him, an initial support on the downside is near the $4,675 level. An initial key support is forming near the $4,550 level. This is close to the 50% Fib retracement level of the upward move from the $4,352 high to $4,774 high. A downside break below the $4.550 support zone could pull the price down sharply. In this case, the price is likely to revisit the $4,400 support zone and the 100 hourly simple moving average.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now correcting lower towards the 60 level.
- Main Support Level – $4,550
- Main Resistance Level – $4,775