Ethereum price initiated a recovery wave after establishing a base above the $4,200 zone, similar to Bitcoin. ETH price managed to rise above the $4,350 and $4,400 resistance levels before encountering selling pressure from the bears. The recent low was established at $4,233, and the price is currently consolidating its losses.
There was a slight rise above the 23.6% Fib retracement level of the recent drop from the $4,491 swing high to the $4,233 low. However, the bulls encounter a challenging situation near $4,320. Additionally, a short-term declining channel is taking shape, with resistance positioned at $4,310 on the hourly chart of ETH/USD. Ethereum price is currently trading under $4,320 and the 100-hourly Simple Moving Average. On the upside, the price may encounter resistance around the $4,300 mark.
The next key resistance is near the 4,320 level. The first major resistance is near the 4,360 level or the 50% Fib retracement level of the recent decline from the 4,491 swing high to the 4,233 low. A decisive breakout above the $4,360 resistance could propel the price towards the $4,420 resistance level. An upside break above the 4,420 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,500 resistance zone or even $4,550 in the near term.
If Ethereum is unable to surpass the $4,360 resistance, it may initiate a new downward trend. Initial support on the downside is near the 4,260 level. The first major support is located around the $4,220 area. A decisive drop beneath the $4,220 support could drive the price down to the $4,200 support level. Further losses could push the price down to the $4,160 support level shortly. The next key support is located at 4,120.