Leading altcoin Ethereum continues its rally. Exceeding $4,500 against the US dollar, ETH rose to $4,662 yesterday, marking a new ATH. According to technical analysis by NewsBTC’s Aayush Jindal, ETH could continue to rise to $5,000 in the short term:
- Ethereum gained momentum above the $4,450 and $4,500 resistance levels.
- Price is now trading above $4,400 and the 100 hourly simple moving average.
- The pair could start a fresh rally if it breaks the $4,600 resistance in the near term.
There was a break above a key downtrend line with resistance near $4,340 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Continues Rally
Ethereum started a fresh rally above the $4,400 resistance zone and the 100 hourly simple moving average. The price climbed above $4,500 and traded to an all-time high. Also, there was a break above a key bearish trend line with resistance near $4,340 on the hourly chart of ETH/USD. It climbed as high as $4,642 before a downside correction took place. There was a break below the $4,600 level and it is currently 23% of the last wave from $4,150 to $4,642. 6 Fib is approaching retracement level.
ETH is now trading well above $4,400 and the 100 hourly SMA. An immediate upside resistance is near the $4,600 level. The next major resistance is near the $4,640 level. A break above the $4,640 level is likely to propel the price above the $4,720 level in the near term. Any further gains could lead the price towards the $5,000 level.
Will Ethereum Drop?
According to Jindal, if Ethereum fails to break above the $4,600 and $4,640 resistance levels, it could start a downside correction. An initial support on the downside is near the $4,540 level. The first major support is near the $4,500 level. The main support is near the $4,400 level and the 100 hourly SMA. The 50% Fib retracement level of the recent wave from the $4.150 high to $4,642 high is also near the $4,400 zone. Further declines could lead the price towards the $4,320 support. The next major support for the bulls is near the $4,200 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 above the 50 level.
- Main Support Level – $4,400
- Main Resistance Level – 4ch640 US$
