- Ethereum is trading in a bullish zone above the $4,200 level.
- The price is consolidating above $4,250 and the 100 hourly simple moving average.
- There was a break above a key contracting triangle with resistance near $4,270 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if there is a clear break above the $4,350 resistance zone.
Ethereum Price Is Rising
Ethereum formed a base above the $4,150 support level. ETH price started a steady recovery wave above the $4,200 resistance zone to move into short-term positive zone.
The price was able to clear the 50% Fib retracement level of the downward move from the $4,386 swing high to $4,169 low. Besides, there was a break above a key contracting triangle with resistance near $4,270 on the hourly chart of ETH/USD.
The pair is consolidating above $4,250 and the 100 hourly simple moving average. An initial resistance on the upside is near the $4,335 level.
The 76.4% Fib retracement level of the downward move from the $4,386 swing high to $4,169 low is also near the $4,330 level. The first major resistance is near the $4,350 level. A close above the $4,330 and $4,350 levels could start a fresh increase in the near term.
Source: ETHUSD on TradingView.com
In the stated case, the price might rise towards the $4,500 level. Any more gains could lift the price towards the $4,650 breakout zone in the near term, where the bears are likely to take a stand.
Fresh Drop in ETH?
If ethereum fails to start a fresh increase above the $4,330 level, it could start a fresh decline. An initial support on the downside is near the $4,270 level.
The first key support is now forming near the $4,250 level and the 100 hourly simple moving average. A downside break below the $4,250 support might push the price further lower. In this case, ether price may perhaps decline towards the $4,150 support.
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 – $4,150
Major Resistance Level – $4,350