Ethereum (ETH) started a downside correction and tested $4,350. The price is again rising and might soon attempt a move above $5,000.
Ethereum Price Eyes Another Surge
In the last analysis, we saw another increase in Ethereum above $4,200. We discussed the chances of more gains above $4,500. The bulls did push the price higher above the $4,650 resistance. Finally, it traded to a new all-time high above $4,950.
A high was formed at $4,958 and the price recently started a downside correction, like Bitcoin. ETH dipped below $4,650 and $4,550. There was a drop below the 23.6% Fib retracement level of the upward move from the $3,362 swing low to the $4,958 high.
Ethereum is still above the $4,350 mark and the 50-day simple moving average. There is also a key bullish trend line forming with support at $4,500 on the daily chart.
Immediate support on the downside is $4,550. The first major area of interest for the bulls could be near the $4,500 level and the trend line. The next key level sits near the $3,980 level, another trend line, the 50-day simple moving average, and the 61.8% Fib retracement level of the upward move from the $3,362 swing low to the $4,958 high.
A daily close below $3,980 might spark a larger correction in Ethereum. In the stated case, the price could drop and retest $3,500. If the bulls fail to protect $3,500, the bears might aim for a move toward $3,360, below which ETH price might even decline and test $3,200 in the coming days.
Upside Continuation In ETH and New ATH
If Ethereum stays above the trend line, there might be a fresh increase. On the upside, the price is facing hurdles near $4,680 level. The first major resistance sits near the $4,800 zone. If there is a clear move above $4,800 resistance, the price could drift toward $4,950.
A daily close above $4,950 may perhaps open the doors for a new all-time high and $5,000. Any more gains above $5,000 level could set the pace for a move toward $5,200 level. The next key resistance could be near the $5,500 region.
Overall, Ethereum price is holding gains above $4,500 and $4,250. If the bulls remain active, they could soon aim for a fresh increase above $4,800 or $4,880. If not, there could be more losses toward $4,000.
