Ethereum Price Gathers Strength – Will a Fresh Increase Come Next?

[Ben Graham]

Ethereum price started a fresh increase from the $4,240 zone. ETH is now consolidating and might aim for more gains if it clears $4,400.

• Ethereum is now eyeing an upside break above the $4,400 zone.
• The price is trading above $4,320 and the 100-hourly Simple Moving Average.
• There was a break above a key bearish trend line with resistance at $4,330 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it settles above $4,380 and $4,400.

Ethereum Price Eyes Upside Break

Ethereum price started a recovery wave after it formed a base above the $4,220 zone, like Bitcoin. ETH price was able to climb above the $4,320 and $4,350 resistance levels.

Besides, there was a break above a key bearish trend line with resistance at $4,330 on the hourly chart of ETH/USD. The pair even climbed above $4,400 before there was a pullback. The recent low was formed at $4,300 and the price is testing the 50% Fib retracement level of the recent decline from the $4,450 swing high to the $4,300 low.

Ethereum price is now trading above $4,320 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance near the $4,375 level. The next key resistance is near the $4,415 level or the 76.4% Fib retracement level of the recent decline from the $4,450 swing high to the $4,300 low.

The first major resistance is near the $4,450 level. A clear move above the $4,450 resistance might send the price toward the $4,550 resistance. An upside break above the $4,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,650 resistance zone or even $4,800 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $4,415 resistance, it could start a fresh decline. Initial support on the downside is near the $4,335 level. The first major support sits near the $4,280 zone.

A clear move below the $4,280 support might push the price toward the $4,240 support. Any more losses might send the price toward the $4,220 support level in the near term. The next key support sits at $4,160.

Technical Indicators

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

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

Major Support Level – $4,335

Major Resistance Level – $4,415