Thursday, 9 December 2021

Ethereum Breaking This Confluence Resistance Could Spark a Significant Surge

Ethereum is still above the $4,250 support against the US Dollar. ETH price could stage a strong rally if it clears the $4,450 resistance zone in the near term.

  • Ethereum is stable and supported above the $4,200 and $4,250 levels.
  • The price is now trading above $4,300 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $4,320 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh rally if it clears the key $4,450 resistance zone.

Ethereum Price Remains Supported

Ethereum consolidated in a range above $4,100 and $4,200 levels. ETH climbed above the $4,400 level, but it is still struggling to clear a confluence resistance near $4,450.

The recent high was formed near $4,456 and it is now consolidating gains. Ether is now trading above $4,300 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $4,320 on the hourly chart of ETH/USD.

The price is trading nicely above the 23.6% Fib retracement level of the recent wave from the $3,900 swing low to $4,456 high. An initial resistance on the upside is near the $4,400 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $4,420 level. The next major hurdle is near the $4,450 level. A clear break and close above the $4,450 level could stage a steady increase in the near term. In the stated case, the price could drift towards the $4,600 level in the near term.

Dips Limited in ETH?

If ethereum fails to start a fresh increase above the $4,450 level, it could extend its downside correction. An initial support on the downside is near the $4,325 level. The key support is now forming near the $4,320 level and the 100 hourly simple moving average.

If there is a clear break below the $4,320 support, the price could extend losses. The next major breakdown support is $4,200 or the 50% Fib retracement level of the recent wave from the $3,900 swing low to $4,456 high, below which the price could decline towards $4,000.

Technical Indicators

Hourly MACD The MACD for ETH/USD is gaining pace in the bullish zone.

Hourly RSI The RSI for ETH/USD is near the 50 level.

Major Support Level – $4,200

Major Resistance Level – $4,450

Source Link



source https://d0llars.com/ethereum-breaking-this-confluence-resistance-could-spark-a-significant-surge/

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