TA: Ethereum Holds Strong at $4,000: A Strengthening Case for Upside
Ethereum gained pace for a move above the $4,000 zone against the US Dollar. ETH price is showing positive signs ad could rally above $4,200.
Ethereum was able to clear the $4,000 and $4,050 resistance levels.
The price is trading well above $4,000 and the 100 hourly simple moving average.
There was a break above a key contracting triangle with resistance near $3,960 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above $4,000 to continue higher in the near term.
Ethereum Price Regains Strength
Ethereum formed a base above the $3,900 level to start a fresh increase. ETH was able to surge above the $4,000 resistance zone and the 100 hourly simple moving average.
The bulls pumped the price above the $4,050 and $4,080 resistance levels. There was also a break above a key contracting triangle with resistance near $3,960 on the hourly chart of ETH/USD. A high was formed near $4,155 and the price started a downside correction.
There was a break below the $4,100 support level. Ether even declined below the 23.6% Fib retracement level of the recent increase from the $3,896 swing low to $4,155 high.
It is now trading well above $4,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $4,120 level. The next major resistance is near the $4,150 level. A clear upside break above the $4,150 level could push the price further higher in the near term.
Source: ETHUSD on TradingView.com
The next stop for the bulls could be $4,200, above which the price could rise to $4,250. Any more gains could send the price towards the $4,320 level.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,150 level, it could correct lower. An initial support on the downside is near the $4,050 level. The first key support is now forming near the $4,020 level.
The 50% Fib retracement level of the recent increase from the $3,896 swing low to $4,155 high is also near the $4,020 zone. A downside break below the $4,020 and $4,000 levels could push the price towards the $3,920 level.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $4,020
Major Resistance Level – $4,150