Ethereum Faces Crucial Test at $4,500 as Recovery Rally Intensifies
Ethereum (ETH) has ignited a fresh recovery, pushing above the $4,350 mark, but is now encountering significant resistance as it attempts to sustain its upward momentum. Investors and traders are closely monitoring the $4,500 level, which could dictate whether the rally continues or if the cryptocurrency faces a fresh wave of declines.
Ethereum's Recovery Bid Faces Stiff Hurdles
Following a base formation above the $4,200 zone, Ethereum's price successfully climbed past initial resistance levels at $4,265 and $4,320. Bulls managed to clear the 50% Fibonacci retracement level of the recent drop from $4,660 to $4,209, alongside breaking a key bearish trend line at $4,385 on the hourly chart. Currently, ETH is trading robustly above $4,420 and the 100-hourly Simple Moving Average. However, the path forward is not without challenges, with the $4,500 level, coinciding with the 61.8% Fib retracement, emerging as a critical hurdle.
Key Levels to Watch for ETH
Potential Upside Trajectory
Should Ethereum successfully close above the $4,500 resistance, it could pave the way for a more substantial rally. The next key resistance points are identified at $4,520, followed by the first major resistance at $4,555. A decisive break above $4,555 could propel the price towards the $4,620 resistance, potentially leading to further gains towards the $4,660 zone or even $4,720 in the near term.
Risk of Renewed Downturn
Conversely, if Ethereum fails to breach the $4,500 resistance, a fresh decline could be triggered. Immediate support on the downside is located near $4,400. The first major support rests at $4,360, and a clear move below this could push the price towards $4,315. Sustained losses might see ETH testing the $4,260 support level, with the next critical support at $4,220.
Technical Insights
- Hourly MACD: For ETH/USD, the MACD is showing a loss of momentum within the bullish zone, suggesting potential weakening of buying pressure.
- Hourly RSI: The Relative Strength Index for ETH/USD is currently holding above the 50 zone, indicating that buyers still have a slight edge.
- Major Support Level: $4,360
- Major Resistance Level: $4,500
