Ethereum Supported On Dips — Buyers Build Strength For Next Leg Higher

Ethereum price started a decent increase above $4,000. ETH is consolidating gains and could aim for more gains above the $4,220 resistance.

• Ethereum started a fresh upward move above $4,000 and $4,120.
• The price is trading above $4,080 and the 100-hourly Simple Moving Average.
• There is a bullish trend line forming with support at $4,055 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it trades above $4,200.

Ethereum price started a steady upward move above the $3,880 zone, like Bitcoin. ETH price surpassed the $4,000 and $4,120 levels to enter a short-term positive zone.

The price even spiked above $4,200. A high was formed at $4,252 and the price is now consolidating gains. There was a minor decline below the 23.6% Fib retracement level of the recent wave from the $3,708 swing low to the $4,252 high.

Ethereum price is now trading above $4,080 and the 100-hourly Simple Moving Average. Besides, there is a bullish trend line forming with support at $4,055 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $4,180 level. The next key resistance is near the $4,200 level. The first major resistance is near the $4,250 level. A clear move above the $4,250 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 $4,480 resistance zone or even $4,500 in the near term.

If Ethereum fails to clear the $4,200 resistance, it could start a fresh decline. Initial support on the downside is near the $4,080 level. The first major support sits near the $4,050 zone and the trend line.

A clear move below the $4,050 support might push the price toward the $3,980 support or the 50% Fib retracement level of the recent wave from the $3,708 swing low to the $4,252 high. Any more losses might send the price toward the $3,840 region in the near term. The next key support sits at $3,780.

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 – $4,050

Major Resistance Level – $4,200