Ethereum extended its increase above the $4,200 resistance against the US Dollar. ETH corrected gains, but it is well supported above the $4,000 pivot level.
Ethereum Price Eyes Fresh Increase
Ethereum gained pace above the $4,200 level and the 100 hourly simple moving average. ETH price traded as high as $4,371 before it started a downside correction.
The price is now trading below the $4,200 level. It even spiked below $4,100, but the bulls were active above the $4,000 level. A low is formed near $4,012 and the price is now rising. There was a break above the $4,050 and $4,100 resistance levels.
Ether price climbed above the 23.6% Fib retracement level of the recent decline from the $4,371 swing high to $4,012 low. An immediate resistance on the upside is near the $4,200 level.
The 50% Fib retracement level of the recent decline from the $4,371 swing high to $4,012 low is also near the $4,200 zone. The next major resistance is near the $4,240 level, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, the price might rise towards the $4,300 level. Any more gains could lift the price towards the next key hurdle at $4,500.
Dips Limited in ETH?
If ethereum fails to continue higher above the $4,200 and $4,240 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,080 level.
The first key support is now forming near the $4,050 level and the trend line zone. A downside break below the trend line might even push the price below the $4,000 support. The next key support is near $3,950, below which the price might decline towards the $3,800 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $4,000
Major Resistance Level – $4,240
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