The majority of the Altcoin market, including Ethereum, has had a great week so far, setting new all-time highs, indicating that there will be less selling pressure in the medium term. On Wednesday, ETH/USD registered a fresh all-time high at the $4,670 level seen on the Coinbase Tradingview chart. Ether bulls will aim the $5,000 round number post new highs as the no. 2 crypto enters price discovery, tracking its end of year expectations. After a mild pullback, ETH seems to be consolidating its massive rally above $4,500 as it approaches uncharted zones ahead. As of this analysis, ETH/USD is hunting for support and has hit the $4,485 intraday lows. The current outlook points to a bullish continuation pattern with a sizable rally on the cards. Ethereum leaps as the blockchain metaverse grows, by powering The Sandbox and Decentraland through its Smart contract capabilities. Following the explosion in Decentralized Finance and Non-Fungible Tokens, Ethereum will experience a similar surge.
Key Levels
Resistance Levels: $5,200, $5,000, $4,700
Support Levels: $4,500, $4,200, $4,000
ETH/USD Daily ChartETH/USD has begun a new slide after failing to establish strength over $4,700 resistance level. The pair has moved into a retracement after establishing $4,670 as a fresh all-time high. It fell below the $4,500 support level, and it is currently consolidating near $4,515. Near the $4,700 mark, a new resistance is forming. On the daily chart, the pair might advance further towards $5,000 if there is a clean break above the $4,700 resistance.
The initial support level is around $4,500. At the $4,400 level, the next support zone forms. A breach below the $4,400 support level might bring the pair down to the $4,200 support. Given the ETH/USD pair manages to finish the week above $4,500, the scales may tilt to favor the bulls. A more sustainable rally can occur if prices stay above $4,600.
ETH/USD 4-Hour ChartEther stabilizes early Thursday after a 2 percent decline from the day before, following a rejection of further advance at the $4,670 all-time high and subsequent weakness. A retracement pattern has emerged on the 4-hour chart, weighing on the near-term structure. South-heading Relative Strength Index is approaching the border of negative territory at midline 50.
However, the price is far above the short-term moving averages (MAs 50 and 200) with a bullish continuation pattern. To generate a negative signal, fresh bears need repeated close below 4-hour MA 50 and break below horizontal support of $4,400 level to confirm reversal and open way for further easing. Positive advances beyond $4,500 will continue to increase expectations among investors towards the $5,000 round number.
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