In terms of the US Dollar, Ethereum Lacks Momentum, is encountering resistance near $4,250. To begin a consistent growth in the near term, ETH must stay above $4,000.
- After a severe plunge below $4,000, Ethereum has begun to recover.
- The price has dropped below $4,250 and is now trading below the 100 hourly simple moving average.
- On the hourly chart of ETH/USD, a key bullish trend line is forming with support near $4,150. (data feed via Kraken).
- If there is a clear break over $4,250 and the 100 hourly SMA, the pair might begin a new rise.
The Price of Ethereum Lacks Momentum, Has Recovered Some of Its Losses.
After breaking the $4,250 support, Ethereum began a steep drop. The $4,000 and $3,800 support levels were broken by ETH. It has begun an upside correction after trading as low as $3,327.
The $3,800 and $4,000 resistance levels were broken above. Ether price even surpassed the 50% Fib retracement level of the latest collapse from the $4,662 swing high to the $3,327 low. It is, however, still below $4,250 and the 100 hourly simple moving average.
On the hourly chart of ETH/USD, a key bullish trend line is forming with support near $4,150. On the upside, near the $4,200 mark, there is some initial resistance. Near the $4,250 mark, the first substantial resistance exists.
Near the $4,350 mark, the next major stumbling block awaits. The current plunge from the $4,662 swing high to $3,327 low is nearing the 76.4 percent Fib retracement level.
A sustained advance above the $4,250 and $4,350 levels might propel the price much higher. Near the $4,500 level, the next significant barrier is found. In the short term, any more rises might push the price towards the $4,650 resistance zone.
Is There a New Drop in ETH?
If Ethereum does not begin a new upward trend above $4,250, it may begin a new downward trend. On the downside, the trend line and the $4,150 level provide first support.
A breach below the $4,150 support zone on the downside could signal the commencement of a longer-term drop. In the above scenario, the price could drop below $4,000 or even lower. The next significant support level is $3,820, below which the price may fall to $3,650.