ethereum price is still struggling to break above the $4,000 resistance zone. eth could consolidate for some time above $3,600 before the bulls gain strength.
- ethereum traded to a new multi-month high above $3,980.
- The price is trading near $3,850 and the 100 hourly simple moving average.
- A short-term breakout pattern is forming with resistance at $3,950 on the hourly chart of eth/USD (data via Kraken).
- The pair could resume its rise if it breaks the $3,950 resistance zone.
ethereum price revisits $4K
ethereum price extended its rally above the $3,900 level, as did bitcoin. eth surpassed the $3,950 level and traded near the $4,000 resistance zone. It traded at a new multi-month high above $3,990 and recently began a consolidation phase.
There was a pullback below the $3,920 level. The price tested the 23.6% Fibonacci retracement level of the recent wave from the low of $3.211 to the high of $3.9983. ethereum price is now consolidating near $3,850 and the 100 hourly simple moving average.
A short-term breakout pattern is also forming with resistance at $3,950 on the hourly chart of eth/USD. If the pair holds above the $3,800 level, it could attempt another rise. The immediate resistance on the upside is near the $3,900 level.
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Fountain: ETHUSD on TradingView.com
The first major resistance is near the $3,940 level. The next major resistance is near $4,000, above which the price could gain bullish momentum. In the indicated case, Ether could rise towards the $4,120 level. If there is a move above the $4,120 resistance, ethereum could even rally towards the $4,220 resistance. Any additional winnings could require a test of $4,350.
Are drops in eth limited?
If ethereum fails to overcome the $3,950 resistance, it could start another downward correction. Initial support on the downside is near the $3,800 level.
The first major support is near the $3,600 zone or the 50% Fibonacci retracement level of the recent wave from the low of $3,211 to the high of $3.9983. The next key support could be the $3,400 zone. A clear move below the $3,400 support could send the price towards $3,250. Any further losses could send the price towards the $3,120 level.
Technical Indicators
MACD hourly – The MACD for eth/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for eth/USD is now below the 50 level.
Main Support Level: $3,800
Main Resistance Level: $3,950
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