- Ethereum price faces resistance at $4,500, aligned with the 0.5 Fibonacci retracement.
- A breakout above $4,500 may target $4,620 and $4,728 next.
- Failure at $4,500 risks decline to $4,381 and $4,237 supports.
Ethereum price is on the verge of a breaking point with the price action in the vicinity of the 4,500 mark. Having recorded weeks of low highs in a falling trend line, ETH price is currently testing a major resistance which can dictate its short term orientation. A break above $4,500 would indicate a reversal to the bullish trend and possibly have an upward target, a pullback at this point would lead to another pullback to either $4,381, or $4,237. The following step will determine the momentum in September.
Ethereum Price Battles the $4,500 Barrier: Breakout or Further Correction Ahead?
The 4-hour Ethereum chart posted by analyst Ali Charts shows that ETH price is in a crucial technical formation as the digital currency consolidates below a falling trendline. Ethereum price is currently trading between 0.5 Fibonacci retracement level at $4,466 and the downward trend resistance, so it is a critical zone. Ali highlights: Ethereum price needs to break a $4500 mark to reverse the trend in a bullish way once more!
As shown in the chart, ETH price has been on a corrective phase since it reached its peak of around $4,957, forming a sequence of subsequent lower highs below the line of declining resistance. The recent support is around $4,300 which coincides with the 0.618 Fib retracement level (4,381). It is currently in an upswing to the middle of the Fibonacci band, although it is still limited by the resistance cluster at $4,500.
To break the downward trendline and, in addition, to regain the important 0.5 Fib line, a breakout above $4,500 would be very important to prove that the momentum changed. This action may lead to the level of $4,620 (0.382 Fib) and even $4,728 (0.236 Fib), and the retest of the $4,900-$5000 area is not entirely impossible.
On the other hand, there might be a rejection at the present level where ETH price may fall back to $4,381 (0.618 Fib) or even below to $4,237 (0.786 Fib). Any further decline below these points would strengthen bearish action and allow a re-test of $4,060 or even below.
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