TA: Ethereum Sets New ATH, Why ETH Could Soon Test $5K

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Ethereum surged over 5% and surpassed $4,500 against the US Dollar. ETH traded to a new all-time high and it could continue to rise towards $5,000 in the near term.

  • Ethereum gained pace above the $4,450 and $4,500 resistance levels.
  • The price is now trading above $4,400 and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $4,340 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh rally if it clears the $4,600 resistance in the near term.

Ethereum Price Extends Rally

Ethereum formed a base above the $4,250 and $4,300 support levels. ETH started a fresh rally above the $4,400 resistance zone and the 100 hourly simple moving average.

The price even climbed above $4,500 and traded to a new all-time high. There was also a break above a key bearish trend line with resistance near $4,340 on the hourly chart of ETH/USD. It traded as high as $4,642 before there was a downside correction.

There was a break below the $4,600 level. Ether is now approaching the 23.6% Fib retracement level of the recent wave from the $4,150 swing low to $4,642 high.

Source: ETHUSD on TradingView.com

It is now trading well above $4,400 and the 100 hourly SMA. An immediate resistance on the upside is near the $4,600 level. The next major resistance is near the $4,640 level. A break above the $4,640 level may possibly push the price above the $4,720 level in the near term. Any more gains could lead the price towards the $5,000 level.

Dips Supported in ETH?

If ethereum fails to climb 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 swing low to $4,642 high is also near the $4,400 zone. Any more downsides could lead the price towards the $4,320 support. The next major support for the bulls is near the $4,200 level.

Technical Indicators

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

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

Major Support Level – $4,400

Major Resistance Level – $4,640

via NewsBTC

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