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

Source : newsbtc.com

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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 MACDThe MACD for ETH/USD is losing pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now correcting lower towards the 50 level.

Major Support Level – $4,400

Major Resistance Level – $4,500