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Ethereum About to See “Liftoff” if It’s Able to Hold One Crucial Level

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Ethereum 4
07
Dec

Ethereum gained pace above the $4,250 resistance zone against the US Dollar. ETH must stay above $4,150 to accelerate higher in the near term.

  • Ethereum started a recovery wave above the $4,000 and $4,250 resistance levels.
  • The price is now trading above $4,150 and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $4,150 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh rally if it stays above $4,150 and the 100 hourly SMA.

Ethereum Price Gains Momentum

Ethereum found support near $3,350 and started a fresh increase. ETH gained pace for a move above the $3,800 and $3,880 resistance levels. It even broke the $4,000 level and the 100 hourly simple moving average.

Besides, the price climbed above the 50% Fib retracement level of the key decline from the $4,660 swing high to $3,327 low. There was also a break above a key bearish trend line with resistance near $4,150 on the hourly chart of ETH/USD.

The pair is now trading above $4,150 and the 100 hourly simple moving average. It is consolidating near the $4,350 resistance zone and the 76.4% Fib retracement level of the key decline from the $4,660 swing high to $3,327 low.

Source: ETHUSD on TradingView.com

An initial resistance on the upside is near the $4,380 level. The first major resistance is near the $4,400 level. The next major hurdle is near the $4,550 level. A clear move above the $4,550 could send the price further higher. In the stated case, the price could drift towards the $4,700 level in the near term.

Dips Limited in ETH?

If ethereum fails to start a fresh increase above the $4,400 level, it could start a downside correction. An initial support on the downside is near the $4,300 level.

The key support is now forming near the $4,150 level and the 100 hourly simple moving average. If there is a clear break below the $4,150 support, the price could accelerate lower. The next major breakdown support is $4,000, below which the price could decline towards $3,850.

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 well above the 50 level.

Major Support Level – $4,150

Major Resistance Level – $4,400

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