Ethereum price is showing signs of recovery after a sharp correction, with bulls looking to regain control for another potential rally toward the $5,000 zone.
Ethereum Recovers From $4,320 Support
Ethereum started a rebound from the $4,320 level after correcting from a new all-time high above $4,950. Unlike Bitcoin, which faced heavy downside pressure, Ethereum quickly regained momentum and broke through key resistance levels.
The price is currently trading close to $4,580 and holding near the 100-hourly Simple Moving Average. A significant technical development was a breakout above a bearish trend line at $4,450 on the hourly chart of ETH/USD, based on data from Kraken.
Key Resistance Levels Ahead
On the upside, immediate resistance lies near $4,630, which aligns with the 50% Fibonacci retracement level of the recent decline from $4,956 to $4,310. A sustained move above this zone could open the doors for more gains.
The next key hurdles stand at $4,650 and $4,720. If Ethereum clears $4,720, the price could climb toward $4,840. A break above this level would likely encourage further bullish momentum, with the $4,950 resistance or even the psychological $5,000 level coming into play.
Downside Risk If Bulls Fail
If Ethereum fails to break the $4,630 resistance, the price may correct lower. The first support level is seen near $4,500, followed by a stronger support at $4,450. A decisive move below $4,450 could trigger a decline toward $4,320. Deeper losses may send ETH toward $4,220, with the next key support at $4,150.
Technical Indicators
- Hourly MACD – The MACD for ETH/USD is gradually losing strength in the bearish zone.
- Hourly RSI – The Relative Strength Index for ETH/USD is now above the 50 mark, signaling renewed bullish interest.
Major Support Levels – $4,450, $4,320, $4,220
Major Resistance Levels – $4,630, $4,720, $4,840
Ethereum’s near-term price action suggests bulls are preparing for a fresh push higher. As long as ETH remains above $4,460, the chances of retesting the $5,000 zone remain strong.
