Ethereum Prints Bullish Technical pattern, Why Close Above $4,500 Is Critical

Aayush Jindal

1 year ago

2 mins read

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Ethereum gained pace above the $4,350 resistance against the US Dollar. ETH could accelerate higher if there is a clear break above the $4,500 resistance zone.

Ethereum is trading in a bullish zone above the $4,350 level.
The price is now well above $4,350 and the 100 hourly simple moving average.
There is a key rising channel forming with support near $4,400 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue higher if it stays above the $4,350 support level in the near term.

Ethereum Price Starts Fresh Increase

Ethereum formed a base above the $4,350 level and started a fresh increase. ETH broke the $4,400 level to move further into a bullish zone.

The price even tested the $4,500 zone and settled above the 100 hourly simple moving average. A high is formed near $4,506 and is currently correcting lower. There was a break below the $4,450 support level. Ether price also dipped below the 23.6% Fib retracement level of the upward move from the $4,282 swing low to $4,506 high.

There is also a key rising channel forming with support near $4,400 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $4,480 level. The first major resistance is near the $4,500 level.

Source: ETHUSD on TradingView.com

A close above the $4,480 and $4,500 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,650 level. Any more gains could lift the price towards the $4,800 zone in the near term.

Dips Limited in ETH?

If ethereum fails to start a fresh increase above the $4,500 level, it could extend its downside correction. An initial support on the downside is near the $4,420 level.

The first key support is now forming near the $4,400 level. It is near the 50% Fib retracement level of the upward move from the $4,282 swing low to $4,506 high. A downside break below the $4,400 support zone could spark a sharp decline. In the stated case, the price is likely to revisit the $4,250 support zone and the 100 hourly simple moving average.

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 correcting lower towards the 50 level.

Major Support Level – $4,400

Major Resistance Level – $4,500

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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