Ethereum followed bitcoin and rallied above the $4,000 resistance against the US Dollar. ETH is correcting gains, but the bulls could remain active near $4,000.
- Ethereum started a fresh increase above the $3,880 and $4,000 resistance levels.
- The price is now trading above $4,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $3,810 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is correcting gains, but there are many supports near $4,050 and $4,000.
Ethereum Price Rally Could Extend
Ethereum started a fresh increase above the $3,880 resistance zone. ETH gained pace after it broke the $3,900 resistance zone and the 100 hourly simple moving average.
There was also a break above a major bearish trend line with resistance near $3,810 on the hourly chart of ETH/USD. The pair cleared the $4,000 barrier to move further into a positive zone. It even spiked above $4,200 and formed a high near $4,240.
Ether price is now correcting lower and trading below $4,200. It is trading below $4,200, with an immediate support at $4,100. The stated level is near the 23.6% Fib retracement level of the recent wave from the $3,740 swing low to $4,240 high.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $4,200 level. The next major resistance is near the $4,240 level, above which the price might start a fresh rally. In the stated case, the price might rise towards the $4,320 level. The next major stop for the bulls may possibly be near the $4,400 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $4,200 and $4,220 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,100 level.
The first key support is now forming near the $4,000 level. It is close to the 50% Fib retracement level of the recent wave from the $3,740 swing low to $4,240 high. Any more downsides could lead the price towards the $3,920 support and the 100 hourly SMA. The next key support is near $3,800.
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 60 level.
Major Support Level – $4,000
Major Resistance Level – $4,240
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