Ethereum (ETH), the second largest cryptocurrency by market cap, has managed to remain strong, unlike Bitcoin. There was a clear break above the $4,200 resistance area and the 100 hourly simple moving average in ETH, which started a recovery wave above the $4,120 resistance area. Besides, there was a break above a major bearish trend line with resistance near $4,205 on the hourly chart of ETH/USD.
According to technical analysis by NewsBTC's Aayush Jindal; An initial resistance on the upside is near the $4,300 level. The first major resistance is near the $4,350 level. A close above the $4,300 and $4,350 levels could start a fresh increase in the near term.
In the stated case, the price could rally to the $4,450 level. Any further gains could push the price higher towards the $4,500 hurdle in the near term.
Will Ethereum Drop?
According to Aayush Jindal, if Ethereum fails to start a fresh increase above the $4,350 level, it could start a fresh decline. An initial support on the downside is near the $4,220 level. There is also a connecting uptrend line forming near $4,220 on the same chart.
An initial key support is currently formed near the $4,200 level. This is close to the 50% Fib retracement level of the upward move from the $4,026 low to $4,386 high. A downside break below the $4,200 support could push the price down further.