Ethereum started an increase similar to Bitcoin after two important news that slightly lifted the market. According to technical analysis by NewsBTC’s Aayush Jindal, ETH could gain momentum if there is a clear break above $4,250 in the near term:
- Ethereum managed to climb above the $4,150 and $4,200 resistance levels.
- Price is now trading above $4.120 and the 100 hourly simple moving average.
- The pair could start a fresh increase if it surpasses the $4,250 and $4,260 resistance levels.
There is a key bullish trend line forming with support near $4,180 on the hourly chart of ETH/USD (data from Kraken).
Ethereum May Increase More
Ethereum managed to clear the $4,120 resistance zone and the 100 hourly simple moving average and even traded above the $4,200 resistance zone. A local top was formed near $4.253 and the price is correcting higher.
An immediate support is near the $4.180 level. This is 23% of the upward move from $3,965 to $4,253. Close to 6 Fib retracement level. There is also a key bullish trend line forming with support near $4,180 on the hourly chart of ETH/USD.
An immediate upside resistance is near the $4.240 level. The next major resistance is near the $4,260 level, where the price could start a fresh rally. In the stated case, the price could rally to the $4,320 level. Any further gains could lead the price towards the $4,500 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to continue higher above the $4,240 and $4,260 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4.180 level and the trend line. A break below the trend line could push the price towards the $4,100 support level. This is close to the 50% Fib retracement level of the upward move from the $3,965 low to $4,253 high. The main support is near the $4,080 level and the 100 hourly SMA. Any further decline could lead the price towards the $3,950 support.
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 – $4.180
- Main Resistance Level – $4.260