Ethereum Prints Bullish Technical pattern, Why Close Above $4,500 Is Critical
Ethereum gained pace above the $4,350 resistance against the US Dollar. ETH could accelerate higher if there is a clear break above the $4,500 resistance zone.
- Ethereum is trading in a bullish zone above the $4,350 level.
- The price is now well above $4,350 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $4,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue higher if it stays above the $4,350 support level in the near term.
Ethereum Price Starts Fresh Increase
Ethereum formed a base above the $4,350 level and started a fresh increase. ETH broke the $4,400 level to move further into a bullish zone.
The price even tested the $4,500 zone and settled above the 100 hourly simple moving average. A high is formed near $4,506 and is currently correcting lower. There was a break below the $4,450 support level. Ether price also dipped below the 23.6% Fib retracement level of the upward move from the $4,282 swing low to $4,506 high.
There is also a key rising channel forming with support near $4,400 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,480 level. The first major resistance is near the $4,500 level.
Source: ETHUSD on TradingView.com
A close above the $4,480 and $4,500 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,650 level. Any more gains could lift the price towards the $4,800 zone in the near term.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,500 level, it could extend its downside correction. An initial support on the downside is near the $4,420 level.
The first key support is now forming near the $4,400 level. It is near the 50% Fib retracement level of the upward move from the $4,282 swing low to $4,506 high. A downside break below the $4,400 support zone could spark a sharp decline. In the stated case, the price is likely to revisit the $4,250 support zone and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now correcting lower towards the 50 level.
Major Support Level – $4,400
Major Resistance Level – $4,500