TA: Ethereum is Showing Early Signs of Fresh Rally, But $4,100 is the Key
Ethereum is gaining pace above the $4,000 zone against the US Dollar. ETH price is showing positive signs, but it must clear $4,100 for a strong upward move.
Ethereum started a fresh increase and surpassed the $4,000 resistance zone.
The price is trading above $4,020 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $4,020 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear $4,100 to accelerate higher in the near term.
Ethereum Price Extends Recovery
Ethereum started a steady increase above the $3,950 and $3,980 resistance levels. ETH even climbed above the $4,020 level and the 100 hourly simple moving average.
Besides, there was a break above a key bearish trend line with resistance near $4,020 on the hourly chart of ETH/USD. The pair traded as high as $4,075 and is currently consolidating gains above the 23.6% Fib retracement level of the recent increase from the $3,750 swing low to $4,075 high.
It is still trading above $4,020 and the 100 hourly simple moving average. There is also a connecting bullish trend line forming with support near $4,020 on the same chart. An immediate resistance on the upside is near the $4,080 level. The next major resistance is near the $4,100 level.
Source: ETHUSD on TradingView.com
A clear upside break above the $4,100 level could push the price further higher in the near term. 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 $4,350 level.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,080 level, it could start a fresh downside correction. An initial support on the downside is near the $4,020 level. The first key support is now forming near the $3,950 level and the 100 hourly simple moving average.
The next major support is near $3,920. It is close to the 50% Fib retracement level of the recent increase from the $3,750 swing low to $4,075 high. If there is a clear break below the $3,920 support, the price could extend losses.
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 – $3,920
Major Resistance Level – $4,100