Ethereum (ETH) started a consolidation phase after hitting a new all-time high at $4,956. The price could restart surge if it stays above $4,250.
Ethereum Price Holds Gains
In the last analysis, we saw the start of a downside correction in Ethereum from the new all-time high at $4,956. The price dipped below the $4,750 and $4,550 support levels, like Bitcoin. The price even spiked below the 23.6% Fib retracement level of the upward move from the $2,114 swing low to the $4,956 high.
However, the bulls are currently active above the $4,200 support and the 50-day simple moving average. There were a few attempts to push ETH below $4,200 but bears failed.
Ethereum is now consolidating above the $4,250 mark and the 50-day simple moving average. There is also a key contracting triangle forming with support at $4,300 on the daily chart. The current price action suggests that the price is forming a base above $4,250 and might attempt a fresh increase.
If ETH stays above the triangle’s support, there might be a fresh surge. On the upside, the price is facing hurdles near $4,620 level. The first major resistance sits near the $4,700 zone and the triangle’s upper trend line. If there is a clear move above $4,700 resistance, the price could drift toward $4,900.
A daily close above $4,900 may perhaps open the doors for a new all-time high and $5,000. Any more gains above $5,000 level could initiate a larger rally toward $5,250 level. The next key stop for the bulls could be near the $5,500 region.
Downside Break In ETH?
If Ethereum fails to start a fresh increase above $4,620 or $4,700, there could be more losses. Immediate support on the downside is $4,420. The first major area of interest for the bulls could be near the $4,300 level, the 50-day simple moving average, and the triangle’s trend line.
A clear break and close below the triangle could spark a sharp decline and larger downside correction. In the stated scenario, Ether might decline toward $4,000. The next key level sits near the $3,800 level.
If the bulls fail to protect $3,800, the bears might aim for a move toward $3,550 since it coincides with the 50% Fib retracement level of the upward move from the $2,114 swing low to the $4,956 high. Any more losses might derail the current uptrend and send ETH to $3,200 in the coming days.
Overall, Ethereum price is consolidating above $4,300 and $4,250. If the bulls remain active, they could soon aim for a fresh increase above $4,800 and $5,000. If not, there could be more losses toward $4,000.