TA: Ethereum Eyes Key Upside Break, Why Bulls Remain In Control

NewsBTC

Ethereum is trading in a bullish zone above $4,200 against the US Dollar. ETH could start another increase if it clears $4,350 and $4,400 in the near term.

  • Ethereum is holding gains above the $4,100 and $4,200 support levels.
  • The price is now trading above $4,200 and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with support near $4,220 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh rally if it clears the $4,400 resistance in the near term.

Ethereum Price Remains Supported

Ethereum formed a base above the $4,120 and $4,100 support levels. ETH started a fresh increase above the $4,200 resistance zone and the 100 hourly simple moving average.

The price even climbed above $4,300, but it is facing resistance near $4,400. A high is formed near $4,380 and the price is now correcting gains. There was a break below the $4,350 level. Ether traded below the 23.6% Fib retracement level of the upward move from the $4,152 swing low to $4,380 high.

It is now holding gains above the $4,200 level and the 100 hourly SMA. There is also a major contracting triangle forming with support near $4,220 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $4,350 level and the contracting triangle on the same chart. The next major resistance is near the $4,400 level. A break above the $4,400 level may possibly push the price above the $4,450 level in the near term. Any more gains could lead the price towards the $4,550 level.

Dips Supported in ETH?

If ethereum fails to climb above the $4,350 and $4,400 resistance levels, it could start a downside correction. An initial support on the downside is near the $4,300 level. The first major support is near the $4,250 level.

It is near the 50% Fib retracement level of the upward move from the $4,152 swing low to $4,380 high.  The main support is near the $4,200 level. Any more downsides could lead the price towards the $4,120 support. The next major support for the bulls is near the $4,000 level, below which there is a risk of a larger decline.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $4,200

Major Resistance Level – $4,400

via NewsBTC

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