Key takeaways
- Ether reclaimed the $4,300 level after briefly dipping into the $4,200 area on Tuesday.
- The second-largest cryptocurrency by market capitalization could push above the $4,500 resistance level in the coming hours.
Support at $4,200 holds for ether
Cryptocurrency markets began the week on a positive note but experienced a flash dump on Tuesday. Bitcoin slid into the $110,000 area, dragging ether and several other major tokens lower.
Despite the drop, ether defended the $4,200 support level, finding a low of $4,211 a few hours ago. Like bitcoin, ether rebounded after the sell-off and is now trading above $4,300.
Ether has stayed above $4,000 in recent days after reaching an all-time high of $4,953 in August. This firm support above $4,000 suggests ether’s rally may not be over and primes the asset for a potential breakout.
Ether targets $4,500 amid bullish sentiment
The 4-hour chart for the ETH/USD pair looks bullish, with ether performing well over the past sessions. Technical indicators point to the $4,200 zone acting as a springboard for further short-term gains.
A 50-level RSI indicates that downward momentum is fading as buyers gradually regain control. MACD lines are also close to converging in bullish territory, reinforcing the view that bulls are increasingly dominant.
If the recovery continues, ETH could clear the $4,500 peak within hours. A sustained bullish move could lift ether toward $4,656 before it tests its all-time high again.
On the flip side, a deeper correction could see ETH break the $4,200 support and fall to the $4,050 low formed on August 20.