Ethereum Price Pullback Limited – Support Levels Could Spark Upside Again

[Ben Graham]

Ethereum price started a fresh increase and climbed above $4,700. ETH is now correcting gains and might aim for another increase if it clears $4,685.

• Ethereum is now eyeing an upside break above the $4,650 zone.
• The price is trading above $4,550 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support at $4,660 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it settles above $4,650 and $4,685.

Ethereum Price Eyes Fresh Increase

Ethereum price started a fresh increase after it formed a base above the $4,350 zone, like Bitcoin. ETH price was able to climb above the $4,550 and $4,650 resistance levels.

The price even climbed above $4,700. A high was formed at $4,765 and the price is now consolidating gains. There was a minor pullback below the 23.6% Fib retracement level of the upward move from the $4,268 swing low to the $4,765 high.

Besides, there was a break below a key bullish trend line with support at $4,660 on the hourly chart of ETH/USD. Ethereum price is now trading above $4,550 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance near the $4,650 level. The next key resistance is near the $4,685 level. The first major resistance is near the $4,700 level. A clear move above the $4,700 resistance might send the price toward the $4,750 resistance. An upside break above the $4,750 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,820 resistance zone or even $4,880 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $4,685 resistance, it could start a fresh decline. Initial support on the downside is near the $4,550 level. The first major support sits near the $4,520 zone and the 50% Fib retracement level of the upward move from the $4,268 swing low to the $4,765 high.

A clear move below the $4,520 support might push the price toward the $4,420 support. Any more losses might send the price toward the $4,350 pivot level in the near term. The next key support sits at $4,270.

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 below the 50 zone.

Major Support Level – $4,550

Major Resistance Level – $4,685