Ethereum quickly rebounded after the drop during the Fed meeting yesterday, setting a new all-time high. After correcting its gains, ETH may limit its losses to $4,400, according to technical analysis by NewsBTC’s Aayush Jindal:
- Ethereum gained momentum above the $4,550 and $4,600 resistance levels.
- Price is currently trading above $4,500 and the 100 hourly simple moving average.
- The pair could start a fresh rally if it breaks the $4,620 resistance in the near term.
There is a key bullish trend line forming with support near $4,540 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Continues to Find Support
Ethereum was affected by the volatility caused by the Fed meeting and experienced a momentary decline. He then quickly recovered and determined a new ATH. It started to correct its gains and there was a break below the $4,600 level. ETH is 23% of the upward move from $4,455 to $4,668. It broke below the 6 Fib retracement level.
ETH is currently trading well above $4,500 and the 100 hourly SMA. There is also a key bullish trend line forming with support near $4,540 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $4,600 level. The next major resistance is near the $4,620 level.
4. Level 620 Matters
A break above the $4,620 level could likely trigger a fresh rally. The next major resistance is near the $4,700 level. Any further gains could push the price towards the $4,800 level in the near term.
Will Ethereum Drop?
According to Jindal, Ethereum could start a downside correction if it fails to break above the $4,600 and $4,620 resistance levels. An initial support on the downside is near the $4,540 level. The first major support is near the $4,540 level and the trend line. This is near the 50% Fib retracement level of the upward move from the $4,455 low to $4,668 high. Further declines could lead the price towards the $4,500 support. The next major support for the bulls is near the $4,450 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 now close to the 50 level.
- Main Support Level – $4,500
- Main Resistance Level – $4,620
