Key Takeaways
- Ether has reclaimed the $4,300 level after briefly dipping into the $4,200 area on Tuesday.
- The second-largest cryptocurrency by market capitalization could push past the $4,500 resistance in the coming hours.
Support at $4,200 for Ether Remains Strong
The cryptocurrency market started the week on a positive note but experienced a brief flash dump on Tuesday. Bitcoin slipped into the $110,000 range, which pulled Ether and other major cryptocurrencies lower for a short period.
Despite the sell-off, Ether held support around $4,200, forming a low near $4,211 earlier. Ether is now recovering alongside Bitcoin from that decline and is trading back above $4,300.
Ether has stayed above $4,000 in recent days after reaching an August all-time high of $4,953. The firm support above $4,000 suggests the rally may not be over and that a breakout could be forthcoming.
Ether Eyes $4,500 Amid Bullish Momentum
The 4-hour ETH/USD chart looks bullish, with Ether showing steady gains over the past sessions. Technical indicators indicate the $4,200 support level could act as a springboard for a short-term rally.
A 50 RSI signals weakening bearish momentum and that bulls are gradually taking control. The MACD lines are also converging toward bullish territory, implying buyers are gaining influence.
If the recovery continues, ETH could move above the $4,500 high within the next few hours. A sustained uptrend would target $4,656 before the next attempt to challenge the all-time high.
On the other hand, if the correction deepens, ETH could break below the $4,200 support and retest the August 20 low near $4,050.