- Ethereum is showing a few positive signs above the $4,200 level.
- The price is now trading above $4,200 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $4,205 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend gains if there is a clear break above the $4,350 resistance zone.
Ethereum remained strong above the $4,050 support level, unlike bitcoin. ETH price formed a base and started a steady recovery wave above the $4,120 resistance zone.
There was a clear break above the $4,200 resistance zone and the 100 hourly simple moving average. Besides, there was a break above a major bearish trend line with resistance near $4,205 on the hourly chart of ETH/USD.
The pair climbed higher above the $4,300 resistance zone and formed a high near $4,386. It is now correcting gains below the $4,300 level. There was a break below the 23.6% Fib retracement level of the upward move from the $4,026 swing low to $4,386 high.
Source: ETHUSD on TradingView.com
The first major resistance is near the $4,350 level. A close above the $4,300 and $4,350 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,450 level. Any more gains could lift the price towards the $4,500 barrier in the near term.
If ethereum fails to start a fresh increase above the $4,350 level, it could start a fresh decline. An initial support on the downside is near the $4,220 level. There is also a connecting bullish trend line near $4,220 on the same chart.
The first key support is now forming near the $4,200 level. It is close to the 50% Fib retracement level of the upward move from the $4,026 swing low to $4,386 high. A downside break below the $4,200 support might push the price further lower.