TA: Ethereum Holds Strong at $4,000: A Strengthening Case for Upside

Aayush Jindal

1 year ago

2 mins read

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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.

Technical Indicators

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

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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