Ethereum Shows Strength – Traders Eye Breakout That Could Trigger Bigger Gains

Ethereum price started a recovery wave above $4,150. ETH is now consolidating and might aim for more gains if it clears the $4,220 resistance.

• Ethereum remained stable above $4,020 and started a recovery wave.
• The price is trading above $4,150 and the 100-hourly Simple Moving Average.
• There is a connecting bullish trend line forming with support at $4,100 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it settles above $4,220 and $4,250.

Ethereum Price Eyes More Gains

Ethereum price remained supported above the $4,020 level and started a recovery wave, like Bitcoin. ETH price was able to recover above the $4,050 and $4,120 resistance levels.

There was a clear move above the 61.8% Fib retracement level of the downward wave from the $4,275 swing high to the $3,826 low. The bulls even pushed the price above $4,200. Besides, there is a connecting bullish trend line forming with support at $4,100 on the hourly chart of ETH/USD.

Ethereum price is now trading above $4,150 and the 100-hourly Simple Moving Average. It is also above the 76.4% Fib retracement level of the downward wave from the $4,275 swing high to the $3,826 low.

On the upside, the price could face resistance near the $4,220 level. The next key resistance is near the $4,250 level. The first major resistance is near the $4,275 level. A clear move above the $4,275 resistance might send the price toward the $4,320 resistance. An upside break above the $4,320 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,450 resistance zone or even $4,500 in the near term.

Pullback In ETH?

If Ethereum fails to clear the $4,250 resistance, it could start a fresh decline. Initial support on the downside is near the $4,150 level. The first major support sits near the $4,100 zone and the trend line.

A clear move below the $4,100 support might push the price toward the $4,050 support. Any more losses might send the price toward the $4,000 region in the near term. The next key support sits at $3,880.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $4,100

Major Resistance Level – $4,250