Ethereum's Bullish Momentum: Targeting $4,250 After Key Recovery
Ethereum (ETH) has demonstrated a robust recovery, pushing past the crucial $4,100 mark after a significant sell-off. While positive signs are emerging, the cryptocurrency now faces a formidable resistance zone around $4,250, signaling a pivotal moment for its short-term trajectory. Following a sharp decline that saw its price dip below $3,800, Ethereum mirrored Bitcoin's recovery, establishing a strong base and reclaiming the $4,000 level. This resurgence was marked by ETH breaking above the 50% Fibonacci retracement level of its recent correction from a high of $4,758 to a low of $3,423. Critically, the price also breached a significant bearish trend line with resistance at $4,100 on the hourly chart, indicating a shift in momentum. Currently, ETH trades comfortably above $4,150 and its 100-hourly Simple Moving Average. For Ethereum to sustain its upward momentum and embark on its "next big leg," it must overcome immediate resistance levels. The first major hurdle is near $4,200, followed by the formidable $4,250 zone, which aligns closely with the 61.8% Fibonacci retracement. A decisive close above $4,320 and then $4,400 could pave the way for further gains, potentially pushing ETH towards $4,450 or even $4,500 in the near term. Conversely, failure to clear the $4,250 resistance could trigger a fresh decline. Initial downside support is found near $4,120, with the primary support at $4,100. A break below this level might lead to further losses, testing $4,020 and possibly $3,950, with strong support around $3,880.
Technical Outlook
The hourly MACD for ETH/USD is showing bullish momentum, having moved into the positive zone. Similarly, the hourly Relative Strength Index (RSI) is positioned above the 50 mark, reinforcing the optimistic sentiment. These indicators suggest that while challenges remain, the immediate technical outlook leans towards further upward movement if key resistance levels are successfully breached.
- Major Support Level: $4,020
- Major Resistance Level: $4,250
