Ethereum Price Squeezes Tight – Watch Out for Sudden Breakout Anytime

[Ben Graham]

Ethereum price started a fresh increase above $4,550. ETH is now consolidating and might attempt to clear the $4,640 resistance.

• Ethereum is now recovering higher above the $4,580 zone.
• The price is trading above $4,600 and the 100-hourly Simple Moving Average.
• There is a short-term contracting triangle forming with resistance at $4,620 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it settles above $4,620 and $4,640.

Ethereum Price Eyes Upside Break

Ethereum price formed a base above $4,420 and started a recovery wave, like Bitcoin. ETH price was able to settle above the $4,500 and $4,520 levels.

The price climbed above the $4,550 and $4,600 resistance levels. The bulls pushed the price above the 50% Fib retracement level of the downward wave from the $4,765 swing high to the $4,416 low. However, the bears are active near the $4,640 level.

The price is facing hurdles near the 61.8% Fib retracement level of the downward wave from the $4,765 swing high to the $4,416 low. 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 $4,640 level. The next key resistance is near the $4,685 level. The first major resistance is near the $4,765 level. A clear move above the $4,765 resistance might send the price toward the $4,840 resistance. An upside break above the $4,840 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,880 resistance zone or even $4,920 in the near term.

Another Pullback In ETH?

If Ethereum fails to clear the $4,640 resistance, it could start a fresh decline. Initial support on the downside is near the $4,580 level. The first major support sits near the $4,535 zone.

A clear move below the $4,535 support might push the price toward the $4,465 support. Any more losses might send the price toward the $4,420 region in the near term. The next key support sits at $4,350.

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 – $4,535

Major Resistance Level – $4,640