The Struggle of Ethereum Price to Clear the $4,000 Resistance Zone

The Struggle of Ethereum Price to Clear the $4,000 Resistance Zone

Ethereum price is currently facing a major obstacle in its journey towards clearing the $4,000 resistance zone. Despite trading to a new multi-month high above $3,980, ETH is struggling to break through this crucial level. The price is currently hovering around $3,850, with the 100-hourly Simple Moving Average acting as a key indicator.

There is a short-term breakout pattern forming with resistance at $3,950 on the hourly chart of ETH/USD. This pattern suggests that the pair could potentially resume its upward trajectory if it manages to clear the $3,950 resistance zone.

Ethereum price recently extended its rally above the $3,900 level, following the footsteps of Bitcoin. However, the price faced resistance near the $4,000 mark and has now entered a consolidation phase. A pullback below the $3,920 level prompted a test of the 23.6% Fib retracement level. Currently, Ethereum price is consolidating near $3,850, with the 100-hourly Simple Moving Average providing crucial support.

If Ethereum manages to stay above the $3,800 level, it could potentially attempt another increase. The immediate resistance lies near the $3,900 level, with the first major resistance at $3,940. A breakthrough above $4,000 could pave the way for a bullish momentum towards $4,120. Further gains could see ETH reaching $4,220 or even $4,350.

On the downside, failure to clear the $3,950 resistance might trigger a downside correction. Initial support at $3,800 could prevent further losses, followed by the $3,600 zone. A move below $3,400 might signal a more significant downward movement towards $3,250 or even $3,120.

Hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone, while the hourly RSI has dropped below the 50 level. These technical indicators suggest a potential shift in the market sentiment.

The struggle of Ethereum price to clear the $4,000 resistance zone reflects the ongoing battle between bulls and bears. Traders and investors should closely monitor key support and resistance levels to gauge the market sentiment accurately.

Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial advice. Trading and investing in cryptocurrencies carry inherent risks, and individuals should conduct their own research before making any investment decisions. All actions taken based on the information provided here are at the sole discretion and risk of the reader.

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