Ethereum Eyes Sustained Upside as Bulls Eye Fresh Breakout
Ethereum's price has recently navigated a period of decline below the $4,550 mark, but new market analysis suggests a potential shift. The cryptocurrency is currently correcting these losses, with bullish sentiment building for a significant move above the $4,650 zone, signaling a possible continuation of its upward trajectory.
Price Action and Key Resistances
After touching a new all-time high above $4,950, Ethereum (ETH) experienced a healthy downside correction, unlike Bitcoin which saw a more stable recovery. The price dipped below critical levels like $4,650 and $4,550, finding a solid floor around the $4,320 zone and forming a low at $4,310. From this point, ETH initiated a fresh upward move, successfully breaking above the $4,400 and $4,450 resistance levels, which included a key bearish trend line on the hourly chart. Currently, ETH is trading near $4,580, comfortably above its 100-hourly Simple Moving Average and the 23.6% Fib retracement level from its recent high-to-low swing. The immediate challenge for bulls lies at the $4,630 resistance, which aligns with the 50% Fib retracement. A decisive push past this, and subsequently the $4,720 major resistance, could propel Ethereum towards the $4,840 mark, potentially paving the way for a retest of $4,950 or even the psychological $5,000 level.
Downside Risks and Support Levels
While the bullish outlook gains traction, Ethereum's price remains sensitive to a failure in clearing the $4,630 resistance. Should ETH be unable to maintain its upward momentum, an immediate downside support is found near the $4,500 level. A more significant test would be at the $4,450 zone, which represents the first major support. A clear break below this point could see the price drop towards the $4,320 support, and further losses might even push ETH down to the $4,220 level, with the next key support sitting at $4,150. Technical indicators offer mixed signals: the Hourly MACD is currently losing momentum in the bearish zone, while the Hourly RSI is positioned above the 50 mark, indicating some underlying strength amidst the correction.
