Ethereum Price Holds Support, Bulls Eyeing More Gains
Ethereum (ETH) has recently experienced a surge in price, reaching a new multi-month high above $4,080. However, the price has since corrected lower and is currently trading below $4,000 and the 100-hourly Simple Moving Average. Despite this correction, there is still potential for further increases in Ethereumโs price.
Price Correction and Support Levels
- Ethereumโs price declined below the $4,000 level after reaching a high of $4,080.
- The downward move broke the 23.6% Fibonacci retracement level of the upward move from the $3,830 swing low to the $4,083 high.
- ETH is now trading below $3,980 and the 100-hourly Simple Moving Average.
- However, there is strong support near the $3,950 zone.
- A bullish trend line is forming with support at $3,965 on the hourly chart of ETH/USD.
- This trend line coincides with the 50% Fibonacci retracement level of the upward move.
Potential for Further Increases
- If Ethereum manages to stay above the $3,950 level, it could make another attempt at increasing its price.
- The immediate resistance on the upside is near $4,025, followed by major resistance at $4,050 and $4,085.
- If ETH breaks above these levels, it could rally towards $4,150 and even reach the $4,250 resistance level.
- A significant gain might lead to a test of $4,320.
Source: ETHUSD on TradingView.com
Downside Risk and Support Levels
If Ethereum fails to clear the $4,025 resistance, it could experience a downside correction. In this scenario:
- The first support level is near $3,950.
- Further support can be found around the $3,880 and $3,830 zones.
- A clear move below $3,830 might push the price towards $3,750.
- Additional losses could bring the price down to the $3,650 level.
Technical Indicators
The technical indicators for Ethereum suggest:
- The hourly MACD is losing momentum in the bullish zone.
- The hourly RSI is now below the 50 level.
Overall, while Ethereum has experienced a correction in its price, there is still potential for further increases. The key levels to watch are the $4,025 resistance and the $3,950 support. Traders should closely monitor these levels to determine the future direction of Ethereumโs price.
Hot Take: Potential for Further Gains in Ethereum Price
Ethereum (ETH) recently reached a new multi-month high above $4,080 before undergoing a correction. While the price is currently trading below $4,000 and the 100-hourly Simple Moving Average, there is still optimism among bulls that ETH will resume its upward trend. Strong support levels exist around $3,950, with a bullish trend line forming at $3,965 on the hourly chart of ETH/USD. If the price holds above $3,950, it could attempt another increase and potentially break through the $4,025 resistance. This could pave the way for further gains, with key resistance levels at $4,050 and $4,085. However, failure to clear the $4,025 resistance may lead to a downside correction, with support levels at $3,880 and $3,830. Traders should monitor these levels closely and keep an eye on technical indicators such as MACD and RSI to gauge market momentum.
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