Ethereum Price Surges to New Highs, Eyes Further Gains
Ethereum has experienced a significant rally, surpassing the $3,750 level and reaching a new multi-month high above $3,880. While Bitcoin failed to extend its gains beyond the $69,200 zone, Ethereum managed to clear the $3,850 level and continue its upward momentum.
After reaching its new high, Ethereum entered a consolidation phase and retraced below the $3,800 level. However, it found support above $3,700 and is currently trading above the 100-hourly Simple Moving Average.
Bullish Flag Pattern Indicates Potential Upside
On the hourly chart of ETH/USD, a short-term bullish flag pattern is forming with resistance at $3,850. This pattern suggests that Ethereum may resume its upward movement if it clears the mentioned resistance zone.
The immediate resistance lies near the $3,880 level. If Ethereum breaks above this level, the next major resistance is around $3,920. A successful breach of this resistance could lead to further bullish momentum and push the price towards $4,000. If the rally continues, Ether may even target the $4,080 resistance level with potential for further gains up to $4,120.
Possible Downside Correction
However, if Ethereum fails to overcome the $3,850 resistance zone, it may experience a downside correction. The initial support on the downside can be found near the $3,740 level.
In case of a further decline, Ethereum’s first major support lies near the $3,650 zone. The next key support area could be around $3,550 or the 50% Fibonacci retracement level of the recent wave from the $3,211 swing low to the $3,898 high. A clear break below the $3,550 support might push the price towards $3,400, and any additional losses could result in a test of the $3,320 level.
Technical Indicators
The hourly Moving Average Convergence Divergence (MACD) for ETH/USD is currently losing momentum within the bullish zone. On the other hand, the Relative Strength Index (RSI) for ETH/USD is above the 50 level, indicating positive market sentiment.
Overall, Ethereum’s price is currently in a favorable position with potential for further gains. A successful break above the $3,850 resistance could pave the way for a rally towards $4,000 and beyond. However, if the resistance holds, a downside correction may occur with initial support at $3,740.
Hot Take: Ethereum Continues its Impressive Run
Ethereum’s recent surge to new multi-month highs demonstrates its strength and resilience in the cryptocurrency market. While Bitcoin struggled to maintain its upward momentum, Ethereum successfully broke through key resistance levels and showed significant bullish potential.
The formation of a bullish flag pattern on the hourly chart indicates that Ethereum may have further room to grow. Traders and investors will be closely watching to see if Ethereum can clear the $3,850 resistance zone and continue its upward trajectory.
With major support levels identified at $3,650 and $3,550, Ethereum has a solid foundation to weather any potential downside corrections. As long as these levels hold, there is optimism that Ethereum’s rally will persist.
As always, it’s important to closely monitor technical indicators such as MACD and RSI for any signs of reversal or loss of momentum. These indicators can provide valuable insights into market sentiment and potential price movements.
Overall, Ethereum’s recent performance has been impressive, and it remains a cryptocurrency to watch in the coming days. Whether it can break through the $3,850 resistance and continue its ascent or experiences a short-term correction, Ethereum’s journey is sure to captivate crypto enthusiasts.
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