Ethereum Bounces Off Critical Support—$4,500 Resistance Looms Next

ETH bulls just dodged a bullet—the last hourly support held firm. Now all eyes are on the $4,500 resistance level, where overleveraged traders will inevitably face their reckoning.

Key levels to watch:

- $3,800 support (the ’please don’t liquidate me’ zone)

- $4,500 resistance (where institutional money starts pretending they ’believed all along’)

Funny how these technical levels matter... until some whale decides to rugpull during low liquidity. Welcome to crypto.

Ethereum Turns Resistance Levels Into Support

Ethereum’s recent rally has seen it break past three notable resistance levels that have rejected its price action for most of April. Interestingly, these resistance levels are located at $1,590, $1,654, and $1,703, as indicated by a technical analysis of Ethereum’s price action on the hourly candlestick timeframe chart on the TradingView platform.

Following these breakouts, Ethereum continued to push upward with momentum until it encountered a tougher ceiling NEAR the $1,800 mark. After briefly tapping into this zone, the price experienced a minor rejection, retracing back towards $1,730 before finding support and beginning another gradual climb.

As it stands, the resistance at $1,800 is the next level to beat in the hopes of a close above $2,000 before the end of April. Nonetheless, even if Ethereum does not reach this level, a bullish sentiment will still be in place if it manages to hold above the broken resistances, which have now turned to support on the H1 timeframe. 

Ethereum Could Still Be Bullish Unless $1,654 Breaks

Ethereum’s outlook remains bullish as long as the newly reclaimed levels at $1,590, $1,654, and $1,703 continue to act as reliable support zones. The first zone, positioned at $1,703, represents a short-term hourly support level. This area may attract early entries, but it is high-risk and prone to breaking easily. 

Beneath that lies the more structurally significant support at $1,654, which is also evident on the 4-hour chart. This level is a medium-risk zone, characterized by a cleaner and sound area of demand. It has a higher probability of initiating a bounce if tested, and its preservation is important in maintaining a short-term bullish bias for Ethereum. 

The strongest support level is at $1,590 and is somewhat low-risk for reentry. It has the most favorable risk-to-reward ratio, where smart money traders are likely to accumulate.

As long as Ethereum stays above $1,703, the current uptrend remains valid. The bullish bias remains intact unless there’s a confirmed break below $1,654. A drop below the $1,654 support would shift the short-term outlook to neutral or bearish. On the other hand, a successful close above $1,800 could cascade toward the next target around $1,840 or even higher.

Featured image from Unsplash, chart from TradingView