Ethereum also retested $4,050, starting a new bearish wave like Bitcoin. According to technical analysis by NewsBTC’s Aayush Jindal, ETH needs to stay above $4,250 and $4,300 before it can start a recovery wave.
Ethereum Faces Barriers
Ethereum also attempted a recovery similar to Bitcoin, but was not successful and could not increase its gains above the $4,350 level. A local top was formed near $4.320 and the price started a fresh decline. There was a break below the $4.250 support zone. The decline gained momentum below the $4,200 level and the 100 hourly simple moving average. A bottom was formed near $4,026 and the price is now correcting losses.
An initial resistance on the upside is near the $4,200 level. 61% of the drop from $4.321 to $4,026. Close to 8 Fib retracement level. The first major resistance is near the $4,250 level and the 100 hourly simple moving average.
4. The $250 Level Is Important
A close above the $4,200 and $4,250 levels could start a fresh increase in the near term. In the stated case, the price could rise to the $4,350 level. Any further gains could push the price up to the next key hurdle, $4,500.
Will Ethereum Drop More?
According to Jindal, if Ethereum fails to start a fresh increase above the $4.250 level, it could increase its losses. An initial key support is currently located near the $4,050 level. A downside break below the $4,050 support could push the price down further. The next key support is near $4,000, below which there is a risk of heavy losses in the short term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
- Main Support Level – $4,050
- Main Resistance Level – $4.250