Ethereum Price Corrects Lower, Could It Trigger Another Buying Spree?

[Ben Graham]

Ethereum price started a downside correction from the $4,780 zone. ETH is again rising from $4,480 and might attempt a steady increase.

• Ethereum started a fresh increase above the $4,520 and $4,550 levels.
• The price is trading above $4,550 and the 100-hourly Simple Moving Average.
• There is a bullish trend line forming with support at $4,500 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it remains supported above the $4,500 zone in the near term.

Ethereum Price Dips Remains Attractive

Ethereum price started a fresh increase above the $4,600 support zone, beating Bitcoin. ETH price was able to climb above the $4,650 and $4,700 resistance levels.

The bulls even pushed the price above the $4,720 resistance zone. Finally, the price tested the $4,780 resistance zone. A high was formed at $4,782 and the price recently corrected gains below the 23.6% Fib retracement level of the upward move from the $4,170 swing low to the $4,782 high.

However, the bulls were active near the $4,480 support. They protected the 50% Fib retracement level of the upward move from the $4,170 swing low to the $4,782 high. The price is again rising and showing positive signs.

Ethereum price is now trading above $4,550 and the 100-hourly Simple Moving Average. There is also a bullish trend line forming with support at $4,500 on the hourly chart of ETH/USD. On the upside, the price could face resistance near the $4,640 level.

The next key resistance is near the $4,680 level. The first major resistance is near the $4,720 level. A clear move above the $4,720 resistance might send the price toward the $4,780 resistance. An upside break above the $4,780 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,880 resistance zone or even $5,000 in the near term.

Another Pullback In ETH?

If Ethereum fails to clear the $4,700 resistance, it could start a downside correction. Initial support on the downside is near the $4,550 level. The first major support sits near the $4,500 zone.

A clear move below the $4,500 support might push the price toward the $4,400 support. Any more losses might send the price toward the $4,315 support level in the near term. The next key support sits at $4,250.

Technical Indicators

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

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

Major Support Level – $4,500

Major Resistance Level – $4,700