Ethereum Rally Gathers Pace, Why Uptrend Isn’t Over Yet
Ethereum started a fresh rally above the $4,200 resistance against the US Dollar. ETH broke the $4,350 level and it could continue to rise in the near term.
Ethereum started a fresh increase above the $4,200 and $4,300 resistance levels.
The price is now trading above $4,300 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $4,250 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $4,250 support zone.
Ethereum Price Eyes Fresh Increase
Ethereum gained pace above the $4,250 level and the 100 hourly simple moving average. ETH price even cleared the $4,320 level to move further into a positive zone.
It spiked above $4,400 and a high is formed near $4,403. The price is now consolidating gains and trading near $4,350. It tested the 23.6% Fib retracement level of the recent increase from the $4,104 swing low to $4,403 high.
An immediate support is near the $4,300 level. There is also a major bullish trend line forming with support near $4,250 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,380 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $4,400 level. A close above the $4,400 level could spark a sharp increase in the near term. In the stated case, the price might rise towards the $4,500 level. Any more gains could lift the price towards the next key hurdle at $4,650.
Dips Limited in ETH?
If ethereum fails to continue higher above the $4,400 and $4,420 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,300 level. The first key support is now forming near the $4,250 level and the trend line zone.
It is near the 50% Fib retracement level of the recent increase from the $4,104 swing low to $4,403 high. A downside break below the trend line might even push the price below the $4,200 support. The next key support is near $4,150 and the 100 hourly SMA, below which the price might decline towards the $4,000 level in the near term.
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 60 level.
Major Support Level – $4,250
Major Resistance Level – $4,400