Ethereum price starts to surge above the $3,950 area. ETH is consolidating gains and may aim to break through the resistance zone at $4,150.
Ethereum begins to surge significantly above $3,950 and $4,000.
Price is below $3,980 and the 100-hour simple moving average.
There is a key bullish trend line forming on the ETH/USD hourly chart, with support at $3,940 (data feed from Kraken).
If the resistance levels at $4,080 and $4,120 are broken, the pair may continue to rise.
Ethereum price regains momentum
Ethereum price remains stable and extends gains above $3,880, but underperforms compared to Bitcoin. ETH is able to rise above the resistance levels of $3,980 and $4,000.
Bulls pushed the pair above the resistance levels of $4,050 and $4,080. A high was formed at $4,107 before a pullback. There was a slight dip below the $4,000 level. The price fell to $3,946 and is currently rising.
Moving down from the swing high of $23.6 to the low of $4,107, this retracement level is above the $3,946 Fibonacci retracement level. Ethereum price is now trading above $4,000 and the 100-hour simple moving average. There is also a key bullish trend line forming on the ETH/USD hourly chart, with support at $3,940.
On the positive side, the price seems to face obstacles near $4,025. The first major resistance level is around $4,070 or near the 76.4% Fibonacci retracement level from the swing high down to the $3,946 low.
Data source: ETHUSD on TradingView.com
The major resistance level is currently forming around $4,120. A clear break of the $4,120 resistance level may lead the price to the $4,250 resistance level. A breakout above the $4,250 resistance level may require more gains in the coming trading days. In such a scenario, Ether may rise to the $4,350 resistance zone or even $4,500.
Downward correction for ETH?
If Ethereum fails to break through the resistance level of $4,120, it may begin another decline. The initial support level is around $3,980. The first major support level is near the $3,940 area.
A clear break below the $3,940 support level may push the price towards the $3,880 support level. Any further losses could lead the price to the $3,800 support level in the short term. The next key support level is at $3,750.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish area.
Hourly RSI – The RSI for ETH/USD is now above the 50 area.
Major support level – $3,940
Major resistance level – $4,120