Ethereum has recently demonstrated a promising upward trend, surpassing the crucial $3,650 zone. The cryptocurrency is currently on a rising trajectory and could potentially challenge the $3,900 resistance level.
- Ethereum experienced a significant surge, breaking past the $3,650 and $3,680 marks.
- The price is currently situated below $3,750, along with the 100-hourly Simple Moving Average.
- An essential bearish trend line was breached, showing resistance at $3,720 on the hourly ETH/USD chart (data sourced from Kraken).
- The pair might continue to ascend if it successfully overcomes the $3,850 and $3,900 resistance barriers.
Ethereum Price Poised for Further Gains
Ethereum’s price sustained its stability above $3,500, initiating a fresh upward trajectory akin to Bitcoin’s movement. The cryptocurrency managed to topple the resistance levels at $3,650 and $3,720. This upward momentum was marked by a breach above a critical bearish trend line, with resistance noted at $3,720 on the hourly ETH/USD chart.
The bullish momentum led to the pair exceeding the 50% Fibonacci retracement level of the previous downward trend, which spanned from the $4,015 swing high to the $3,488 low. Ethereum’s price even surged beyond the $3,800 resistance zone, currently trading above $3,750 and the 100-hourly Simple Moving Average. However, on the upside, the cryptocurrency faces potential resistance near the $3,850 mark.
Resistance and Potential Upside
The initial significant resistance level is positioned near $3,890, which coincides with the 76.4% Fibonacci retracement level of the downward wave from the $4,015 swing high to the $3,488 low. The primary resistance is taking shape near the $4,000 mark. A decisive breakthrough above this level might propel Ethereum’s price towards the $4,050 resistance.
An upward move beyond the $4,050 resistance could potentially set the stage for further gains in upcoming trading sessions. Should this scenario unfold, Ether could advance towards the $4,150 resistance zone or even challenge the $4,220 level.
Potential for Another Decline in ETH?
Conversely, if Ethereum fails to surpass the $3,890 resistance, it could trigger another downward trend. The initial support on the downside is identified near the $3,800 level, with the first major support zone positioned around $3,750.
A definitive move below the $3,750 support might drive the price towards the $3,650 support level. Should there be additional losses, the price may descend further towards the $3,550 support level in the near term. The next key support is located at $3,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is building momentum in the bullish zone, signaling potential upward movement.
Hourly RSI – The RSI for ETH/USD has climbed above the 50 zone, suggesting increased buying interest.
Major Support Level – $3,750
Major Resistance Level – $3,890
