Ethereum extended its decline below $4,100 and spiked below $4,000 against the US Dollar. ETH is recovering, but it must break $4,175 before there was a fresh increase.
- Ethereum corrected lower below the $4,200 and $4,175 support levels.
- The price is now trading above $4,050 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $4,000 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $4,200 and $4,175 support levels.
Ethereum Price Could Rally
Ethereum started a downside correction from the $4,000 resistance zone. ETH traded below the $4,200 support zone and the 100 hourly simple moving average.
Ether price even traded below the $4,000 support zone. A low was formed near $3,964 before there was a recovery wave. There was a break above the $4,050 level and the 100 hourly simple moving average.
The price climbed above $4,100, but it is facing resistance near the $4,175 and $4,200 levels. A high is formed near $4,155 and the price is now consolidating. An immediate support is near the $4,100 level. The stated level is near the 23.6% Fib retracement level of the upward move from the $3,964 swing low to $4,155 high.
Source: ETHUSD on TradingView.com
There is also a key bullish trend line forming with support near $4,000 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $4,175 level. The next major resistance is near the $4,200 level, above which the price might start a fresh rally. In the stated case, the price might rise towards the $4,250 level. Any more gains could lead the price towards the $4,320 level.
Dips Supported in ETH?
If ethereum fails to continue higher above the $4,175 and $4,200 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,080 level.
The first key support is now forming near the $4,050 level. It is close to the 50% Fib retracement level of the upward move from the $3,964 swing low to $4,155 high. The main support is near the $4,000 level. Any more downsides could lead the price towards the $3,920 support.
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 – $4,000
Major Resistance Level – $4,200
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Author: Aayush Jindal