Ethereum Lacks Momentum But Dips Will Be Limited Above $4200


Ethereum lacks momentum as it faced resistance near the $4250 zone against the US dollar. ETH however has to stay above this level to start a steady increase in the near term as we can see more in today’s Ethereum news.

Ethereum started a recovery wave after the drop below $4000 and the price is now trading below $4250 and the 100 hourly simple moving average. There’s also a key bullish trend line that is forming with the support near $4150 on the hourly charts of the pair. The pair could soon start a new rally if there’s a break above $4250 and a 100 hourly SMA. Ethereum lacks momentum as it neared $4200 as it dropped from the $4250 support. It broke $4000 and $3800 as support levels and traded as low as $3237 while recently starting an upside correction.

crypto market
Cryptocurrency Market Overview. Source Quantify Crypto

There was also a break above the $3800 and $4000 resistance levels but the ETH price climbed above the 50% Fib retracement level from the drop of the $4662 swing high to $3237 low. It is still trading below the $4250 and the 100 hourly simple moving average but there’s also a key bullish line forming with the support near the $4150 on the hourly chart of the ETH/USD pair with an initial resistance on the upside being near the $4200 level and the first major resistance being set at $4250.

The next major hurdle is close to the $4250 level and it is near the 76.4% fib retracement level from the recent drop of the $4662 high to $3327 low. A clear move above these levels could send the price higher with the next major resistnace nearing the $4500 level. More gains could bring the price towards the $4650 resistance zone in the near term so if ETH fails to start a new increase above $4250, it could start a new decline. The initial support on the downside is close to the $4150 level and a trend line. A downside break below this support zone could launch ETH into a drop and in the stated case, the price could drop towards the $4000 level. The next major breakdown support is close at $3820 below which the price could drop to $3650.

ethusd
Source ETHUSD on TradingView.com

The hourly MACD for the pair is gaining pace in the bullish zone while the RSI for the pair is above the 50 levels. The first major support level is set at $4150 and the resistance one is set at $4250.

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