Ethereum started a downside correction below $4,700 against the US Dollar. ETH is recovering, but it must clear $4,720 to start a fresh increase in the near term.
Ethereum Price Eyes Fresh Increase
Ethereum failed to settle above $4,700 level and started a fresh decline. ETH price declined below the $4,650 support level to move into a short-term bearish zone.
There was also a break below $4,550 and the 100 hourly simple moving average. However, the bulls appeared near the $4,450 support zone. Besides, there was a break below a key bullish trend line with support near $4,720 on the hourly chart of ETH/USD.
A low is formed near $4,452 and the pair is now recovering losses. It cleared the $4,500 resistance zone. Ether is now trading above the 23.6% Fib retracement level of the recent decline from the $4,866 high to $4,452 low. An initial resistance on the upside is near the $4,660 level.
The 50% Fib retracement level of the recent decline from the $4,866 high to $4,452 low is near the $4,660 level. The 100 hourly SMA is also near the $4,680 level. The next major resistance is near the $4,700 level.
Source: ETHUSD on TradingView.com
A close above the $4,700 level could spark a sharp increase in the near term. In the stated case, the price might rise towards the $4,850 level. Any more gains could lift the price towards the next key hurdle at $5,000.
Dips Limited in ETH?
If ethereum fails to continue higher above the $4,660 and $4,700 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,500 level.
The first key support is now forming near the $4,450 level and the recent low. A downside break below the $4,450 support might push the price below the $4,300 support. The next key support is near $4,200.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $4,450
Major Resistance Level – $4,700
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