TA: Ethereum is About to See “Liftoff” if It’s Able to Hold One Crucial Level

Ethereum corrected lower from the $4,150 resistance zone against the US Dollar. ETH price is holding the $4,000 support and could start a fresh increase.

• Ethereum is trading above the $4,000 and $4,050 support levels.
• The price is trading above $4,040 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $4,100 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must stay above $4,000 to continue higher in the near term.

Ethereum attempted an upside break above the $4,150 resistance zone but failed. ETH started a downside correction and traded below $4,100.

There was a break below the 23.6% Fib retracement level of the upward move from the $3,895 swing low to $4,155 high. The price even spiked below $4,050 and the 100 hourly simple moving average. However, the bulls remained active near the $4,000 level.

The 50% Fib retracement level of the upward move from the $3,895 swing low to $4,155 high also acted as a support. It is now rising and trading above the 100 hourly simple moving average.

An immediate resistance on the upside is near the $4,100 level. There is also a key bearish trend line forming with resistance near $4,100 on the hourly chart of ETH/USD. The next major resistance is near the $4,155 level. A clear upside break above the $4,155 level could start another major increase in the near term. In the stated case, the price could rise towards the $4,250 level. Any more gains could send the price towards the $4,350 level.

If ethereum fails to start a fresh increase above the $4,100 level, it could correct further lower. An initial support on the downside is near the $4,040 level and the 100 hourly SMA.

The first key support is now forming near the $4,000 level. A downside break below the $4,040 and $4,000 levels could put a lot of pressure on the bulls. In the stated case, the price could decline towards the $3,920 support zone in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.

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

Major Support Level – $4,000

Major Resistance Level – $4,155