ETH Holds Above $3,720 Level, Despite Resistance at $3,840
As an Ethereum investor, you might be pleased to see that the price is maintaining its gains above the $3,720 level, despite facing resistance near $3,840. Let’s take a closer look at the current market situation to understand where ETH might be headed next.
Support and Resistance Levels
- Ethereum’s price is trading above $3,750 and the 100-hourly Simple Moving Average, indicating a bullish trend.
- A connecting bullish trend line is forming with support near $3,760 on the hourly chart of ETH/USD, showing a positive sign for the cryptocurrency.
- If the pair manages to break above the $3,840 resistance, the price could experience a significant upward movement.
Ethereum Price Holds Support
Ethereum’s price recently dipped below the $3,760 support zone, retesting the $3,720 level before bouncing back. The cryptocurrency found strong support at $3,728 before starting another uptrend.
Despite facing resistance near $3,840, Ethereum is currently consolidating its gains below the 23.6% Fib retracement level of the recent uptrend.
The price is now trading above $3,760 and the 100-hourly Simple Moving Average, indicating a positive momentum for ETH.
If Ethereum continues to rise, it might encounter resistance near $3,820 and $3,840 before aiming for higher levels.
A break above the $3,840 resistance could pave the way for further gains towards $3,920 and potentially $4,000 in the near term.
Potential Decline in ETH?
Should Ethereum fail to surpass the $3,840 resistance level, it could face another downward correction in the near future.
The initial support is near $3,780, followed by the 50% Fib retracement level at $3,760. A break below these levels could push the price towards $3,720 and even $3,650.
Technical Indicators
When looking at the technical indicators for ETH/USD:
- Hourly MACD: The MACD is showing signs of losing momentum in the bullish zone, suggesting a potential downside correction.
- Hourly RSI: The RSI is currently above the 50 zone, indicating a bullish sentiment among traders.
Key Levels to Watch
- Major Support Level – $3,760
- Major Resistance Level – $3,840
Hot Take: Stay Cautious Amidst Resistance
As an Ethereum enthusiast, it’s essential to keep a close eye on the $3,840 resistance level. While the cryptocurrency continues to hold support above $3,720, a clear break above $3,840 could signal a bullish breakout. However, failure to overcome this obstacle may lead to a downward correction in the near term. Monitor the key support and resistance levels to make informed trading decisions.
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