TA: Ethereum Corrects Lower, Why ETH Remains Supported For Fresh Rally
Ethereum traded to a new all-time high above $4,800 before correcting lower against the US Dollar. ETH could start a fresh rally unless there is a break below $4,650.
Ethereum started a downside correction below the $4,750 and $4,700 levels.
The price is now trading above $4,650 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $4,800 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if there is no break below $4,650.
Ethereum Price Eyes Fresh Increase
Ethereum extended rally above the $4,650 and $4,700 resistance levels. ETH gained pace above the $4,750 resistance zone and the 100 hourly simple moving average.
The price even climbed above $4,800 and traded to a new all-time high. It traded as high as $4,839 and is currently correcting gains. There was a break below the $4,750 support level. Besides, there was a break below a major bullish trend line with support near $4,800 on the hourly chart of ETH/USD.
It even traded below the 23.6% Fib retracement level of the upward move from the $4,346 swing low to $4,839 high. Ether price is now trading above $4,650 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $4,720 level. The next major resistance is near the $4,750 level. A break above the $4,750 level may possibly spark a fresh rally. The next key resistance is near the $4,800 level. Any more gains could lead the price towards the $5,000 level in the near term.
Dips Supported in ETH?
If ethereum fails to climb above the $4,720 and $4,750 resistance levels, it could extend its downside correction. An initial support on the downside is near the $4,680 level and the 100 hourly SMA.
The first major support is also near the $4,600 level. It is close to the 50% Fib retracement level of the upward move from the $4,346 swing low to $4,839 high. Any more downsides could lead the price towards the $4,540 support. The next major support for the bulls is near the $4,460 level.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $4,650
Major Resistance Level – $4,750