Ethereum has recently shown a promising upward trend, surpassing the $3,900 mark and demonstrating potential for more gains. As the cryptocurrency consolidates its recent gains, market analysts are keenly observing its movements to predict whether it can breach the $4,000 resistance zone.
Overview of Ethereum’s Recent Price Movement
- Ethereum initiated a steady climb, moving above the critical levels of $3,880 and $3,920.
- Currently, the price is trading below $3,920 and is positioned under the 100-hourly Simple Moving Average.
- There was a significant break above a key bearish trend line, with resistance identified at $3,900 on the ETH/USD hourly chart (data sourced from Kraken).
- For Ethereum to maintain its upward trajectory, it needs to clear the resistance levels at $3,980 and $4,020.
Ethereum Price Faces Key Resistance Levels
The Ethereum price has shown stability, extending its gains above $3,850, although it hasn’t kept pace with Bitcoin’s performance. The cryptocurrency successfully surpassed the resistance levels of $3,920 and $3,980, indicating positive momentum.
Breaking past a crucial bearish trend line at $3,900, Ethereum saw bullish activity pushing the pair beyond the $4,000 and $4,010 resistance levels. A peak was recorded at $4,019, and since then, the price has entered a consolidation phase. A slight dip below the $3,980 level was observed, suggesting minor retracement.
Ethereum’s price is currently trading above $3,880, maintaining a position above the 100-hourly Simple Moving Average. As it continues to face resistance, the $4,000 level emerges as a significant hurdle. The first major resistance point is near $4,020, with the main resistance forming around $4,050. Successfully breaching the $4,050 resistance could propel the price towards the $4,150 mark.
An upward breakout above the $4,150 resistance could lead to further gains in upcoming trading sessions. Should this scenario unfold, Ethereum may advance towards the $4,250 resistance zone or even approach the $4,320 level.
Potential for Another Decline in ETH?
In the event that Ethereum fails to surpass the $4,000 resistance, a decline could be on the horizon. Initial support on the downside is located near the $3,920 level, aligning with the 50% Fibonacci retracement level from the upward move starting at the $3,831 swing low and reaching the $4,019 high. The first major support is positioned around the $3,880 zone.
A decisive move below the $3,880 support could drive the price lower towards the $3,840 support level. Further losses might see Ethereum testing the $3,750 support level in the near term, with the next key support found at $3,650.
Technical Indicators
Hourly MACD
The MACD for ETH/USD is building momentum in the bullish zone, indicating potential for further upward movement.
Hourly RSI
The RSI for ETH/USD is currently above the 50 zone, suggesting a bullish sentiment among traders.
Major Support Level
$3,920
Major Resistance Level
$4,000
