Ethereum price has been making significant strides recently, surpassing the $3,550 resistance level. Following the path of Bitcoin, Ethereum is showing signs of a potential rally towards the $4,000 resistance zone. The cryptocurrency is gaining momentum and currently trading above $3,650 and the 100-hourly Simple Moving Average.
Bullish Trend Line
A connecting bullish trend line is forming with support at $3,600 on the hourly chart of ETH/USD, indicating a possible upward movement in the price. The pair seems to be setting up for a move towards the $3,850 and $4,000 levels, signaling a bullish trend in the near future.
After extending its rally above the $3,500 level, Ethereum reached a new multi-month high at $3,715. The price is now consolidating gains and trading above the 23.6% Fib retracement level of the upward move from the $3,465 swing low to the $3,715 high.
Resistance and Support Levels
Immediate resistance on the upside is near the $3,720 level, followed by the first major resistance at $3,780. The next major resistance lies near $3,850, above which the price might gain further bullish momentum towards the $3,920 level.
Potential Correction
However, if Ethereum fails to clear the $3,720 resistance, it could experience a downside correction. Initial support on the downside is near the $3,650 level, followed by the first major support at $3,600 and the trend line. A clear move below the $3,550 support could potentially send the price towards $3,420, with further losses pushing it to the $3,350 level.
Technical Indicators
The Hourly MACD for ETH/USD is gaining momentum in the bullish zone, indicating a positive trend. Additionally, the Hourly RSI for ETH/USD is now above the 50 level, showing strength in the current price movement.
It is important to note that the information presented in this article is for educational purposes only. It does not represent the opinions of any specific entity on whether to buy, sell, or hold any investments. As with any investment, there are risks involved, and individuals are advised to conduct their own research before making any investment decisions.
Ethereum’s price surge above the $3,550 resistance level and the potential rally towards the $4,000 resistance zone indicate a bullish trend in the cryptocurrency market. However, it is crucial to monitor the support and resistance levels, as well as the technical indicators, to assess the future movement of Ethereum’s price accurately.
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