Ethereum’s price is experiencing a notable increase, climbing from the $3,650 zone. The cryptocurrency is gaining momentum, with ambitions to surpass the $3,950 resistance level soon. This analysis delves into Ethereum’s current market dynamics and its potential future movements.
Current Ethereum Market Conditions
- Ethereum has consistently stayed within a positive zone, maintaining its position above the critical $3,680 level.
- The price trend is currently above $3,770, supported by the 100-hourly Simple Moving Average.
- There was a successful breach above a short-term bearish trend line, with resistance identified at $3,870 on the ETH/USD hourly chart, sourced from Kraken data.
- If the pair manages to clear the $3,890 resistance zone, it may continue its upward trajectory.
Ethereum Price Eyes Further Upsides
Ethereum’s price has remained robust, well-supported above the $3,670 threshold. It established a solid foundation, recently initiating a new upward trend that surpassed the $3,720 mark, outperforming Bitcoin in the process. The bullish momentum allowed the price to break through the $3,780 resistance.
This upward movement was marked by a decisive push above the 50% Fibonacci retracement level, which stemmed from the decline between the $3,956 swing high and the $3,680 low. Additionally, there was a break above a short-term bearish trend line with resistance at $3,870 on the ETH/USD hourly chart.
Currently, Ethereum is trading above $3,780 and remains supported by the 100-hourly Simple Moving Average. However, it faces potential obstacles around the $3,890 level, which corresponds to the 76.4% Fibonacci retracement of the aforementioned downward move.
Potential Resistance Levels
The initial significant resistance level lies near $3,950, with primary resistance forming around $3,980. A decisive move above the $3,980 resistance could propel the price towards the $4,000 threshold. Should Ethereum manage to break through the $4,000 resistance, the potential for additional gains in upcoming trading sessions increases. In this scenario, the price could ascend towards the $4,050 resistance zone, possibly even reaching $4,120.
Will Ethereum Experience Another Pullback?
Should Ethereum encounter difficulties in surpassing the $3,890 resistance, it may face another downward correction. The initial support on the downside is positioned near $3,820, with the first significant support level located around $3,775.
If Ethereum breaches the $3,775 support, it could descend towards the $3,720 support level. Further declines might drive the price down to the $3,650 support in the near term, with the next crucial support resting at $3,620.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is gaining momentum within the bullish zone, indicating potential upward movement.
Hourly RSI: The RSI for ETH/USD is currently above the 50 mark, suggesting a bullish bias.
Major Support Level: $3,775
Major Resistance Level: $3,890
