Key takeaways
- Ether recovered to the $4,300 level after briefly dipping to the $4,200 area on Tuesday.
- The second-largest cryptocurrency by market cap could now attempt to break the $4,500 resistance in the coming hours.
Support at $4,200 remains firm for Ether
The crypto market started the week on a positive note but experienced a sharp pullback on Tuesday. Bitcoin fell toward the $110,000 area, dragging Ether and other major cryptocurrencies lower.
Despite that drop, Ether defended the $4,200 support level, forming a low near $4,211 a few hours ago. Like Bitcoin, Ether has bounced from that decline and is currently trading above $4,300.
Ether has held above $4,000 in recent days after reaching a peak of $4,953 in August. Strong support above $4,000 suggests Ether’s rally may not be over and could be poised for another upside move.
Ether eyes $4,500 amid improving sentiment
The 4-hour ETH/USD chart shows constructive price action as Ether has performed well recently. Technical indicators indicate that the $4,200 zone could act as a springboard for further gains in the near term.
An RSI around 50 points to waning bearish momentum and a gradual shift in control toward buyers. MACD lines are also converging in bullish territory, reinforcing that buyers are gaining strength.
If the recovery continues, ETH could clear the $4,500 peak within the next few hours. A sustained rally would see Ether challenge $4,656 before it attempts to push toward its all-time high.
On the other hand, if a deeper correction unfolds, ETH could break the $4,200 support and test the $4,050 low formed on August 20.