Ethereum has also started an upside correction similar to Bitcoin. It has started to rally and it could continue to rise if there is a clear break above $4,350 according to technical analysis by NewsBTC’s Aayush Jindal:
- Ethereum started a recovery wave from the $4,065 support zone.
- 4. If there is a break below $240 and $4,200, the pair could start a fresh decline.
There is a key ascending channel forming with support near $4.240 on the hourly chart of ETH/USD (data from Kraken).
Ethereum at Risk
Ethereum, like Bitcoin, started an upside correction. It climbed above the $4,150 and $4,200 resistance levels to start a short-term recovery wave. 23% of the drop from $4,730 to $4,067. There was a break above the 6 Fib retracement level. ETH is now trading above $4,250 and the 100 hourly simple moving average. There is also a key ascending channel forming with support near $4,240 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,300 level. The first major resistance is near the $4,350 level. The breakout zone could be near the $4,400 level and the 100 hourly simple moving average.
4. The 50% Fib retracement level of the decline from the $730 high to $4,067 low is also near the $4,420 zone. A close above the $4,400 and $4,420 levels could start a fresh increase in the near term. In the indicated case, the price could rally to the $4,550 level. Any further gains could push the price higher towards the next key hurdle, $4,650.
Will Ethereum Drop More?
According to Jindal, if Ethereum fails to rise above the $4,350 and $4,400 resistance levels, it could start a fresh decline. An initial support on the downside is near the $4,250 level. An initial key support is currently forming near the $4,240 level. 4. A downside break below the $240 support and the channel trend line could push the price down further. The next key support is near $4,150, below which the price could slide towards the $4,065 level.
Technical Indicators What do they say?
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now falling towards the 50 level.
- Main Support Level – 4. $240
- Main Resistance Level – $4.350