Ethereum rallied above the $4,200 resistance and outperformed Bitcoin in the last 24 hours. Although ETH started a downside correction, it was well supported above the $4,000 pivot zone. According to technical analysis by NewsBTC’s Aayush Jindal, if Ethereum reclaims $4.240, it could gain bullish momentum:
- Ethereum started a fresh increase above the $4,000 and $4,200 resistance levels.
- Price is currently trading above $4.100 and the 100 hourly simple moving average.
- The pair could start a fresh increase if it stays above the $4.010 support zone.
There is a key bullish trend line forming with support near $4,050 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Eyes on a New Rising
Ethereum gained momentum above the $4,200 level before starting a downside correction and as high as $4,371. However, it is currently trading below the $4,200 level. It even dropped below $4,100 but the bulls were active above the $4,000 level. A bottom was formed near $4.012 and the price is currently rising. There was a break above the $4,050 and $4,100 resistance levels. The price is 23% of the drop from $4,371 to $4,012. It broke above the 6 Fib retracement level. An immediate resistance on the upside is located near the $4,200 level.
4. 240 Dollars Level is Important for Rising
The 50% Fib retracement level of the decline from the $4.371 high to $4.012 low is also near the $4,200 zone. The next major resistance is near the $4,240 level, where the price could gain bullish momentum. In the stated case, the price could rise to the $4,300 level. Any further gains could push the price towards the next key hurdle at $4,500.
Will Ethereum Drop?
Jindal says that if Ethereum fails to rise above the $4,200 and $4,240 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,080 level. An initial key support is now forming near the $4,050 level and the trend line zone. A downside break below the trendline could even push the price below the $4,000 support. The next key support is near $3,950, below which the price could decline towards the $3,800 level in the near term.
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 above the 50 level.
- Main Support Level – $4,000
- Main Resistance Level – 4.$240