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TA: Ethereum Gains Momentum, Why Bulls Could Aim More Upsides

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Ethereum started a fresh increase above $4,200 against the US Dollar. ETH could gain pace if there is a clear  break above $4,250 in the near term.

  • Ethereum was able to climb above the $4,150 and $4,200 resistance levels.
  • The price is now trading above $4,120 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $4,180 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it clears the $4,250 and $4,260 resistance levels.
Ethereum Price Could Rise Further

Ethereum started a from increase from the $4,000 support zone. ETH was able to clear the $4,120 resistance zone and the 100 hourly simple moving average.

Ether price even traded above the $4,200 resistance zone. A high was formed near $4,253 and the price is now correcting lower. It traded below the $4,220 level. An immediate support is near the $4,180 level. The stated level is near the 23.6% Fib retracement level of the upward move from the $3,965 swing low to $4,253 high.

There is also a key bullish trend line forming with support near $4,180 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $4,240 level.

Source: ETHUSD on TradingView.com

The next major resistance is near the $4,260 level, above which the price might start a fresh rally. In the stated case, the price might rise towards the $4,320 level. Any more gains could lead the price towards the $4,500 level.

Dips Supported in ETH?

If ethereum fails to continue higher above the $4,240 and $4,260 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,180 level and the trend line.

A break below the trend line could push the price towards the $4,100 support level. It is close to the 50% Fib retracement level of the upward move from the $3,965 swing low to $4,253 high. The main support is near the $4,080 level and the 100 hourly SMA. Any more downsides could lead the price towards the $3,950 support.

Technical Indicators

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 50 level.

Major Support Level – $4,180

Major Resistance Level – $4,260


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