Ethereum is showing early signs of a fresh rally, but $ 4,100 is the key

By | December 22, 2021

Ethereum is gaining pace above the $ 4,000 zone against the US Dollar. ETH price is showing positive signs, but it should clear $ 4,100 for a strong bullish move.

  • Ethereum started a new rally and broke the $ 4,000 resistance zone.
  • The price is trading above $ 4,020 and the 100 hourly simple moving average.
  • There was a break above a key downtrend line with resistance near $ 4,020 on the hourly chart of ETH / USD (data feed via Kraken).
  • The pair must clear $ 4,100 to accelerate to the upside in the short term.

Ethereum price extends recovery

Ethereum started a steady rise above the $ 3,950 and $ 3,980 resistance levels. ETH even rallied above the $ 4,020 level and the 100 hourly simple moving average.

Additionally, there was a breakout above a key downtrend line with resistance near $ 4,020 on the ETH / USD hourly chart. The pair traded as high as $ 4,075 and is currently consolidating gains above the 23.6% Fib retracement level of the recent rally from the $ 3,750 low to $ 4,075 high.

It is still trading above $ 4,020 and the 100 hourly simple moving average. A connecting uptrend line is also forming with support near $ 4,020 on the same chart. An immediate resistance on the upside is near the $ 4,080 level. The next major resistance is near the $ 4,100 level.

Ethereum Price

Source: ETHUSD on TradingView.com

A clear break to the upside above the $ 4,100 level could push the price even further in the near term. The next stop for the bulls could be $ 4,200, above which the price could climb to $ 4,250. More gains could send the price towards the $ 4,350 level.

Dips Limited on ETH?

If ethereum does not initiate a new rise above the $ 4,080 level, it could start a new downside correction. An initial support on the downside is near the $ 4,020 level. The first key support is now forming near the $ 3,950 level and the 100 hourly simple moving average.

The next major support is near $ 3,920. It is close to the 50% Fib retracement level of the recent rally from the $ 3,750 low to $ 4,075 high. If there is a clear break below the $ 3,920 support, the price could extend the losses.

Technical indicators

MACD per hourThe MACD for ETH / USD is gaining momentum in the bullish zone.

RSI per hourThe RSI for ETH / USD is now above the 50 level.

Major Support Level – $ 3,920

Major Resistance Level – $ 4,100

 

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