Key takeaways
- Ether has reclaimed the $4,300 level after briefly dropping to the $4,200 region on Tuesday.
- The second-largest crypto by market cap could now surge past the $4,500 resistance level in the coming hours (UTC+8).
$4,200 support holds strong for Ether
The cryptocurrency market has had a positive start to the week but experienced a flash dump on Tuesday. Bitcoin dropped to the $110k region, prompting Ether and other major cryptocurrencies to underperform.
However, Ether defended the $4,200 support, with the coin forming a low at $4,211 a few hours ago (UTC+8). Ether, similar to Bitcoin, is now bouncing back from the dump and is currently trading above the $4,300 level.
Ether has maintained its price above $4k in recent days after hitting an all-time high of $4,953 in August. The strong support above $4k could indicate that Ether is not yet done with its rally and could experience a breakout soon.
Ether eyes $4,500 amid bullish sentiment
The ETH/USD 4-hour chart is bullish and efficient, as Ether has been performing well in recent days. The technical indicators suggest that the TLQ at $4,200 could serve as a springboard for Ether to rally higher in the near term.
The RSI of 50 shows that Ether’s bearish momentum is fading, with the bulls slowly gaining control of the market. The MACD lines are also about to converge in the bullish zone, showing that buyers are now in charge.
If the recovery continues, ETH could surge past the high of $4,500 over the next few hours (UTC+8). An extended bullish run would see Ether hit the high of $4,656 before attempting to take out its all-time high.
However, if the correction goes deeper, ETH could take out the $4,200 support level before testing the low of $4.050 formed on August 20th.
