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Ethereum price started a decent increase above the $3,950 area. ETH is consolidating its gains and could aim to break above the $4,150 resistance zone.
- Ethereum started a decent rise above $3,950 and $4,000.
- The price is trading below $3,980 and the 100 hourly simple moving average.
- A key bullish trendline is forming with support at $3,940 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could continue to rise if it breaks the resistance levels of $4,080 and $4,120.
Ethereum price regains momentum
Ethereum price remained stable and extended its gains above $3,880, but it underperformed Bitcoin. ETH managed to move above the $3,980 and $4,000 resistance levels.
The bulls pushed the pair above the $4,050 and $4,080 resistance levels. A high was formed at $4,107 before there was a pullback. There was a slight decline below the $4,000 level. The price was trading as high as $3,946 and is currently rising.
There was a move above the 23.6% Fibonacci retracement level of the downside move from the $4,107 high to $3,946 low. Ethereum price is now trading above $4,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support at $3,940 on the ETH/USD hourly chart.
On the upside, the price seems to face obstacles near the $4,025 level. The first major resistance is near the $4,070 level or the 76.4% Fibonacci retracement level of the downward move from the $4,107 high to $3,946 low.
The main resistance is now forming near $4,120. A sharp move above the $4,120 resistance could send the price towards the $4,250 resistance. A bullish break above the $4,250 resistance could lead to more gains in the coming sessions. In the indicated case, Ether could reach the resistance zone of $4,350 or even $4,500.
Downward correction in ETH?
If Ethereum fails to clear the $4,120 resistance, it could begin a further decline. Initial downside support is near the $3,980 level. The first major support lies near the $3,940 area.
A sharp move below the $3,940 support could push the price towards the $3,880 support. Any further losses could push the price towards the $3,800 support level in the near term. The next key support lies at $3,750.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,940
Major Resistance Level – $4,120
