The Ethereum price is in a consolidation phase around the $4,000 range, with signs of renewed upward momentum as bulls target a potential move above the $4,200 level.
After reaching a new multi-month high above $4,080, Ethereum experienced a corrective pullback. Nevertheless, the price remains above $4,000 and the 100-hourly Simple Moving Average. Notably, there was a breakout above a significant contracting triangle with resistance at $4,025, as indicated on the hourly chart of ETH/USD (data feed via Kraken).
For the upward trend to continue, the Ethereum pair must successfully surpass the $4,085 resistance zone. This breakthrough could pave the way for a resumption of the upward trajectory.
The strength of Ethereum’s price has been restored.
Ethereum’s price surged above the $4,000 resistance, mirroring Bitcoin’s movement. The cryptocurrency reached a new multi-month high surpassing $4,050 but experienced a subsequent pullback.
Although the price briefly dipped below $4,000, bullish activity was evident around the $3,850 zone, leading to a rebound. The low reached $3,830, and the price is currently on an upward trajectory. Breaking above the $4,000 resistance, the price cleared the 50% Fibonacci retracement level of the recent decline from the $4,088 swing high to the $3,830 low.
Presently, Ethereum’s price is above $4,000 and the 100-hourly Simple Moving Average. Notably, there was a breakout from a crucial contracting triangle with resistance at $4,025 on the hourly chart of ETH/USD.
Positive signs are emerging above the 76.4% Fibonacci retracement level of the recent decline from the $4,088 swing high to the $3,830 low. Sustaining levels above $4,020 could prompt another upward move. Immediate resistance on the upside is anticipated near the $4,085 level.
The initial significant resistance lies around the $4,120 level, followed by a subsequent major resistance near $4,150. Surpassing this level could trigger bullish momentum, potentially propelling the Ether price towards the $4,280 mark. Further advancement beyond the $4,280 resistance might lead Ethereum to target the $4,350 resistance. Continued upward movement could potentially test the $4,500 level.
Is there a restricted downside potential for Ethereum (ETH)?
Should Ethereum be unable to surpass the $4,085 resistance, a potential downward correction may ensue. Initial support in such a scenario is anticipated around the $4,020 level.
The primary support level on the downside is situated near the $3,965 zone, aligned with the 100-hourly Simple Moving Average (SMA). Subsequently, a key support level could emerge around the $3,880 zone. A decisive breach below this support might propel the price towards $3,830. Further losses could lead to a downturn towards the $3,740 level.
Analyzing technical indicators, the hourly MACD for ETH/USD indicates an increasing bullish momentum, while the hourly RSI has surpassed the 50 level.
Key Levels:
- Major Support Level: $3,965
- Major Resistance Level: $4,085