Ethereum (ETH/USD) has been on a hot streak in April, coming up from a low of around $370 to a high in May of $825. This rally might not be sustainable in the short-term, but the bulls are still in control based on the 4H chart.
ETH/USD 4H Chart
Bulls in Charge:
- The 4H chart shows that price is still above the 200- and 100-period simple moving averages, although it is now under the 50-period SMA.
- The RSI has held above 40 after pushing above 70. This is a sign that the bullish momentum is still alive.
- Price is also still above a couple of rising trendline supports.
- The only bearish sign is possible price top in early May, and the fact that price retreated from $775 instead of pushing to $800 during the 5/7-5/8 sessions.
Key Support @ $700:
- From the price action in the Coinbase exchange, we can see that when ETH/USD came down to $700, there was strong buying.
- However, the rejection at $775 is likely going to translate to another test of the $700 support.
- Will it hold a second time? Or will traders see the price top and capitulate.
- I think if price does get to $700, there might be a brief rebound, but it will likely break.
- A break below $700 opens up the $575 area, though we should probably monitor for support around $600-%$625.