Ethereum, the second-largest cryptocurrency by market capitalization, is currently exhibiting significant bullish momentum, showing promising signs of continued growth. Following a fresh recovery above the $4,120 mark, technical indicators suggest that ETH is poised to climb further, potentially targeting the $4,400 level and beyond.
ETH's Resilient Recovery and Key Support
Ethereum initiated a strong recovery wave, successfully surpassing the $3,850, $4,000, and $4,120 price levels, mirroring a similar rebound seen in Bitcoin. The asset formed a solid base, enabling it to clear the 50% Fibonacci retracement level of a previous major downturn from its $4,758 swing high to the $3,422 low. Currently, ETH is trading comfortably above the $4,200 pivot point and the 100-hourly Simple Moving Average. A crucial bullish trend line, offering strong support around $4,150 on the hourly ETH/USD chart (via Kraken data), further reinforces this upward trajectory. Sustained trading above $4,320 is critical for further upward movement.
Navigating Resistance Towards Higher Targets
As Ethereum continues its ascent, it faces immediate resistance near the $4,250 level. The next significant hurdle is positioned around $4,400, which also coincides with the 76.4% Fib retracement level of the aforementioned major drop. A definitive break above the $4,400 resistance could propel the price towards the $4,500 mark. Should the bulls maintain control and push past the $4,500 region, the cryptocurrency could see further gains, potentially reaching the $4,550 resistance zone or even $4,650 in the near term, signaling a strong bullish outlook.
Potential Downside and Critical Indicators
However, if Ethereum fails to breach the $4,300 resistance, it might trigger a fresh decline. Initial downside support rests near the $4,150 level and the established bullish trend line. A more substantial support zone lies at $4,120. A clear break below this $4,120 support could lead to a fall towards $4,050, and extended losses might push the price down to the $3,950 region, with the next key support at $3,880. From a technical perspective, the Hourly MACD for ETH/USD is showing increasing momentum in the bullish zone, and the Hourly RSI is positioned above the 50 mark, both indicating underlying buying strength despite potential resistance challenges.
