- Ethereum found support near $3,700 and it surged to a new all-time high near $4,280.
- The price is trading well above $4,200 and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $4,045 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher towards the $4,350 and $4,500 levels.
Ethereum Price Resumes Rally
After a sharp decline, ethereum found support above the $3,600 zone. ETH formed a base above the $3,700 level and it started a fresh increase. There was a clear break above the $4,000 resistance level.
There was also a break above a major contracting triangle with resistance near $4,045 on the hourly chart of ETH/USD. The bulls were able to clear the 76.4% Fib retracement level of the key decline from the $4,215 swing high to $3,500 swing low.
Ether is now trading well above $4,200 and the 100 hourly simple moving average. It cleared the last swing high and traded to a new all-time high near $4,280. The current price action suggests high chances of more gains above the $4,300 level.
Source: ETHUSD on TradingView.com
The first major resistance is near the $4,380 level. It is near the 1.236 Fib extension level of the key decline from the $4,215 swing high to $3,500 swing low.
A clear break above the $4,380 level could set the pace for a larger increase. The next target for the bulls may possibly be near the $4,500 level.
Dips Limited in ETH?
If Ethereum fails to continue higher towards $4,380, it could start another downside correction. An initial support on the downside is near the $4,210 level (the recent breakout zone).
The first key support is near the $4,150 level. The main support is now forming near the $4,000 level. If there is a downside break below the $4,000 zone, the price could decline towards the $3,700 support.
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $4,150
Major Resistance Level – $4,380