Ethereum is trading in a bullish zone above the $4,550 level.
The price is now well above $4,650 and the 100 hourly simple moving average.
There was a break above a major ascending channel with resistance near $4,560 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue higher if it stays above the $4,650 support level in the near term.
Ethereum Price Rallies Above $4,700
Ethereum remained stable above the $4,500 level and started a fresh increase. ETH broke the $4,600 level to move further into a bullish zone.
There was a clear break above the $4,650 level and the 100 hourly simple moving average. Besides, there was a break above a major ascending channel with resistance near $4,560 on the hourly chart of ETH/USD.
The pair climbed to a new multi-week high above the $4,700 level. It traded as high as $4,774 and is currently correcting lower. It is trading above the 23.6% Fib retracement level of the upward move from the $4,352 swing low to $4,774 high.
Source: ETHUSD on TradingView.com
An initial resistance on the upside is near the $4,775 level. The first major resistance is near the $4,800 level. A close above the $4,775 and $4,800 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $5,000 level. Any more gains could lift the price towards the $5,200 zone in the near term.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $4,800 level, it could start a downside correction. An initial support on the downside is near the $4,675 level. The first key support is now forming near the $4,550 level.
It is near the 50% Fib retracement level of the upward move from the $4,352 swing low to $4,774 high. A downside break below the $4,550 support zone could p a sharp ush the price further lower. In the stated case, the price is likely to revisit the $4,400 support zone and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now correcting lower towards the 60 level.
Major Support Level – $4,550
Major Resistance Level – $4,775