Consolidation Phase: Ethereum Holds Above Key Support Levels
As Ethereum tested the $3,840 resistance, it has entered a consolidation phase, currently trading above $3,700 and the 100-hourly Simple Moving Average. A short-term contracting triangle is forming with support at $3,690 on the hourly chart of ETH/USD via Kraken. The cryptocurrency could potentially continue its upward movement unless there is a breach below the critical $3,450 support level.
Impressive Performance: Ethereum Price Surpasses Resistance Levels
Amidst a bullish trend, Ethereum’s price surged above the $3,500 and $3,650 resistance levels, outperforming Bitcoin. The cryptocurrency even surpassed the $3,800 mark, establishing a new weekly high at $3,838 before entering a period of consolidation to solidify gains.
- Ethereum is maintaining above the 23.6% Fib retracement level from the recent swing low of $3,065 to the high of $3,838.
- The price is currently above $3,700 and the 100-hourly Simple Moving Average, indicating a positive trend.
- A short-term contracting triangle is developing with a support level at $3,690 on the hourly ETH/USD chart.
Resistance and Potential Growth: Ethereum Eyeing Further Upside
With immediate resistance at $3,780 and major resistance at $3,840, Ethereum is poised for potential growth. A breakout above $3,840 could propel the price higher towards the next significant barrier at $3,920 and potentially rally towards the psychological level of $4,000.
If the bullish momentum continues, Ethereum could target the $4,080 resistance level, with further advancements leading towards the $4,200 zone.
Possible Retracement: Downside Scenario for Ethereum Price
In the event that Ethereum fails to surpass the $3,780 resistance, a downside correction may occur. Initial support is expected near $3,690 and the trend line, followed by a more substantial support zone around $3,650. A breach below $3,650 could drive the price towards $3,450 or even the 50% Fib retracement level.
- If bearish pressure intensifies, Ethereum may decline further towards the $3,360 level in the short term.
Key Technical Indicators for Ethereum
The following technical indicators provide insight into Ethereum’s current price dynamics:
- Hourly MACD: The MACD for ETH/USD is displaying signs of weakening bullish momentum.
- Hourly RSI: The RSI for ETH/USD remains above the crucial 75 zone, indicating ongoing bullish sentiment.
Major Support Level: $3,650
Major Resistance Level: $3,840
Hot Take: Ethereum’s Consolidation and Potential Upside
With Ethereum holding above key support levels and eyeing further upside beyond resistances, the cryptocurrency market eagerly anticipates its next move. Stay tuned for developments in the Ethereum price action, as bullish momentum may continue to drive the digital asset towards new heights.
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