On the daily chart, the ETH/USD pair continues to trade below the rising channel that formed from late September to mid-November. However, the ETH/USD pair was able not only to hold above the level of 3900 but also to return above $4000. At the time of publication, the ETH/USD pair is trading around 4500. This is below the November high but above the downtrend line. This line provides support for the ETH/USD pair in the area of 4500.
The ETH/USD chart looks strong enough for the bullish rally to continue. But for the ETH/USD pair to continue its bullish rally, it needs to hold above the level of 4510. Holding above this level and returning to the area of 4580 will bring the ETH/USD pair back into the aforementioned upward channel. The movement within the ascending channel will provide the pair with new highs.
From a technical point of view, the return of the ETH/USD pair to the upward channel will send it to the next resistance level of 4620. A move above this level will confirm the continued bullish rally and the pair’s desire to reach new highs.
However, it should be noted that if the ETH/USD pair cannot hold above the support level of 4500, this will put strong pressure on it. In this case, the pair will drop to the area of 4450. The main support is in the area of 4350, a move below this level will trigger a sharp decline.
The Relative Strength Index confirms the bullish outlook, showing an uptrend above the 50 mark.