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 may attempt to break the $4,500 resistance in the coming hours.
Support at $4,200 Holds Firm for Ether
The crypto market started the week on a positive note but suffered a sharp sell-off on Tuesday. Bitcoin fell into the $110k area, dragging Ether and other major tokens lower.
Despite the downturn, Ether defended the $4,200 support, recording a recent low of $4,211. Like Bitcoin, Ether rebounded from that level and is currently trading above $4,300.
Ether has stayed above $4,000 in recent days after reaching an all-time high of $4,953 in August. Consistent support above $4,000 suggests the rally may not be finished and could set the stage for another upward move.
Ether Eyes $4,500 amid Bullish Sentiment
The 4-hour ETH/USD chart shows a bullish bias as Ether has performed well in recent sessions. Technical indicators suggest the $4,200 support could act as a springboard for further gains in the near term.
The RSI near 50 indicates bearish momentum is waning while buyers gradually regain control. MACD lines are also preparing to converge in bullish territory, signaling increasing buying pressure.
If the recovery continues, ETH could climb above $4,500 within the next several hours. A sustained bullish run could push Ether toward $4,656 before any attempt to revisit its all-time high.
On the other hand, a deeper correction could see ETH retest the $4,200 support and potentially fall to the $4,050 low recorded on August 20.