Ethereum failed to test $4,500 and corrected lower against the US Dollar. ETH is trading above $4,150 and it might attempt a fresh increase in the near term.
Ethereum started a downside correction below the $4,320 and $4,250 levels.
The price is now trading below $4,300 and the 100 hourly simple moving average.
There is a key declining channel forming with resistance near $4,300 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $4,150 support zone.
Ethereum Price Eyes Fresh Increase
Ethereum failed to settle above $4,400 level and started a fresh decline. ETH price declined below the $4,320 support level to move into a short-term bearish zone.
There was also a break below $4,250 and the 100 hourly simple moving average. However, the bulls appeared near the $4,150 support zone. A low is formed near $4,152 and the pair is now recovering losses. It cleared the $4,200 resistance zone.
Ether is now trading above the 23.6% Fib retracement level of the recent decline from the $4,393 high to $4,152 low. An initial resistance on the upside is near the $4,250 level.
The 50% Fib retracement level of the recent decline from the $4,393 high to $4,152 low is near the $4,270 level. The 100 hourly SMA is also near the $4,270 level. The next major resistance is near the $4,300 level. There is also a key declining channel forming with resistance near $4,300 on the hourly chart of ETH/USD.
A close above the $4,300 level could spark a sharp increase in the near term. In the stated case, the price might rise towards the $4,400 level. Any more gains could lift the price towards the next key hurdle at $4,550.
Dips Limited in ETH?
If ethereum fails to continue higher above the $4,300 and $4,320 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,200 level.
The first key support is now forming near the $4,150 level and the recent low. A downside break below the $4,150 support might push the price below the $4,100 support. The next key support is near $4,000.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $4,150
Major Resistance Level – $4,300
