Ethereum Lacks Momentum Above $4,200, But Dips Likely To Be Limited

Ethereum Lacks Momentum Above $4,200, But Dips Likely To Be Limited

Ethereum is facing resistance near the $4,250 zone against the US Dollar. ETH must stay above $4,000 to start a steady increase in the near term.

  • Ethereum started a recovery wave after a major drop below $4,000.
  • The price is now trading below $4,250 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $4,150 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh rally if there is a clear break above $4,250 and the 100 hourly SMA.

Ethereum Price Recovers Losses

Ethereum started a major decline after it broke the $4,250 support. ETH broke the $4,000 and $3,800 support levels. It traded as low as $3,327 and recently started an upside correction.

There was a break above the $3,800 and $4,000 resistance levels. Ether price even climbed above the 50% Fib retracement level of the recent drop from the $4,662 swing high to $3,327 low. However, it is still trading below $4,250 and the 100 hourly simple moving average.

Besides, there is a key bullish trend line forming with support near $4,150 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,200 level. The first major resistance is near the $4,250 level.

The next major hurdle is near the $4,350 level. It is near the 76.4% Fib retracement level of the recent drop from the $4,662 swing high to $3,327 low.

Source: ETHUSD on TradingView.com

A clear move above the $4,250 and $4,350 levels could send the price further higher. The next major resistance is near the $4,500 level. Any more gains could lift the price towards the $4,650 resistance zone in the near term.

Fresh Drop in ETH?

If ethereum fails to start a fresh increase above the $4,250 level, it could start another decline. An initial support on the downside is near the $4,150 level and the trend line.

A downside break below the $4,150 support zone might start a steady decline. In the stated case, the price may perhaps decline towards the $4,000 level. The next major breakdown support is $3,820, below which the price could decline towards $3,650.

Technical Indicators

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

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

Major Support Level – $4,150

Major Resistance Level – $4,250

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: