Ethereum, like Bitcoin, managed to gain momentum above the $4,350 resistance at a time when there was an uneasy outlook in the market. According to technical analysis by NewsBTC’s Aayush Jindal, further acceleration is possible if there is a clear break above the $4,500 resistance zone.
Ethereum Starts A New Rise
Ethereum also managed to start a new rise like Bitcoin. It formed a bottom above the $4.350 level and broke the $4,400 level. The price even tested the $4,500 zone and climbed above the 100 hourly simple moving average. A local top was formed near $4.506 and it is currently correcting lower. There was a break below the $4,450 support level and the price is down 23% of the upward move from the $4,282 low to $4,506 high. It broke below the 6 Fib retracement level. There is also a key ascending channel forming with support near $4,400 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,480 level. The first major resistance is near the $4,500 level.
4. The $500 Level Is Important
A close above the $4,480 and $4,500 levels could start a fresh increase in the near term. In the indicated case, the price could rise to the $4,650 level. Any further gains could push the price higher towards the $4,800 zone in the near term.
Will Ethereum Drop?
According to Jindal, if Ethereum fails to start a fresh increase above the $4,500 level, it could continue its downside correction. An initial key support is currently formed near the $4,400 level. This is close to the 50% Fib retracement level of the upward move from the $4,282 low to $4,506 high. A downside break below the $4.400 support zone could lead to a sharp decline. In the stated case, the price is likely to revisit the $4,250 support zone and the 100 hourly simple moving average.
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 correcting lower towards the 50 level.
- Main Support Level – $4,400
- Main Resistance Level – $4,500
