Ethereum adjusted to a new record high tide and broke above the $4,000 resistance. ETH is currently correcting but bulls may remain active around $4,000, according to analysis by NewsBTC’s Aayush Jindal:
- Ethereum started a fresh increase above the $3,880 and $4,000 resistance levels.
- Price is now trading above $4,000 and the 100 hourly simple moving average.
- The pair is correcting gains but there are many supports near $4,050 and $4,000.
There was a break above a major downtrend line with resistance near $3,810 on the hourly chart of ETH/USD (data from Kraken).
Ethereum Can Sustain Rally
Ethereum followed Bitcoin and started a fresh increase above the $3,880 resistance zone. ETH gained momentum after it broke the $3,900 resistance zone and the 100 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $3,810 on the hourly chart of ETH/USD and it broke the $4,000 hurdle. It even broke above $4,200 and formed a local top near $4,240.
Ethereum is now correcting lower and trading below $4,200. An immediate support is located around $4,100. This is 23% of the recent wave from $3,740 to $4,240. Close to 6 Fib retracement level.
4. 240 Important for a New Wave
An immediate upside resistance is near the $4,200 level. The next major resistance is near the $4,240 level, where the price could start a fresh rally. In the stated case, the price could rally to the $4,320 level. The next big stop for the bulls is likely near the $4,400 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to continue higher above the $4,200 and $4,220 resistance levels, a fresh downside correction could begin. An initial support on the downside is near the $4.100 level. An initial key support is now forming near the $4,000 level. This is close to the 50% Fib retracement level of the last wave from the $3,740 low to $4,240 high. Further declines could lead the price towards the $3,920 support and the 100 hourly SMA. The next key support is near $3,800.
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 60 level.
- Main Support Level – $4,000
- Main Resistance Level – $4.240 USD