The price of Ether continues to rise in the uptrend line and will soon reach $850.
On Thursday, Ethereum closed trading at $770. As predicted, the Bulls were able to break through the resistance level of $713.24. The Ethereum price analysis indicates that the price of Ether will continue to rise with the next resistance at $849.08.
Ethereum Price Analysis For May 4th
Despite the effort of the bulls to maintain the uptrend, a downward correction rally may be attempted by the bears before a new level can be reached by the bulls.
Based on the 4 hour chart for Ethereum, a temporal dip below the uptrend may be necessary for another significant break. We expect a 50% resistant level which falls at around $849.08. In this case, even if there is an temporarily active downward price correction, Ether is still going to rise toward the new resistance level.
The bullish crossover was marked by a cross from a 50 period SMA to a 200 period SMA.
The current bullish wave in the market has been characterized by bursts of upward trends followed by brief downward price correction attempts since April 7th. The upward trendline is what has been preventing the correction attempts from bringing the price below the rising support level.
On Tuesday, however, the price dropped below the support level temporarily. So, it’s okay to expect a brief price correction attempt to pull it near $713.24 before it will rise again to $849.08.
If you consider the ETH/USD one day chart and 4 hour chart, you’ll see that a downward price correction attempt is the most logical expectation. The temporary correction attempt will be active for a few hours before Ether will rise as high as $849.08 within the next few days.
Traders should not attempt to sell their Ether during the downward trend as analysis have shown that it would only be temporary and it is necessary for another significant break through the resistance.