Ethereum Price Reaches New Highs, Consolidates Near $3,850
The price of Ethereum has surged to a multi-month high above $3,980, and is currently trading near $3,850. The cryptocurrency is consolidating at this level, supported by the 100-hourly Simple Moving Average. A short-term breakout pattern is forming with resistance at $3,950 on the ETH/USD hourly chart.
- Ethereum traded to a new multi-month high above $3,980.
- The price is trading near $3,850 and the 100-hourly Simple Moving Average.
- There is a short-term breakout pattern forming with resistance at $3,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its increase if it clears the $3,950 resistance zone.
Ethereum price has seen a significant rally similar to Bitcoin. It has surpassed the $3,900 level and broke through the $3,950 level. The cryptocurrency came close to reaching the crucial $4,000 resistance zone and even traded to a new multi-month high above $3,990 before entering a consolidation phase.
During a pullback below the $3,920 level, Ethereum tested the 23.6% Fib retracement level of the recent wave from the $3,211 swing low to the $3,983 high. Currently, Ethereum price is consolidating near $3,850 and is supported by the 100-hourly Simple Moving Average.
Potential Breakout and Resistance Levels
A short-term breakout pattern is forming with resistance at $3,950 on the hourly chart of ETH/USD. If Ethereum manages to hold above the $3,800 level, it could make another attempt to increase its value. The immediate resistance on the upside is near the $3,900 level.
If Ethereum successfully clears the $3,950 resistance zone, it has the potential to resume its rally. The first major resistance is near the $3,940 level, followed by a crucial resistance at $4,000. Surpassing this level could bring bullish momentum and push the price towards $4,120. Further gains might even lead to a test of $4,350.
Support Levels and Possible Corrections
If Ethereum fails to break above the $3,950 resistance, it could experience a downside correction. The initial support on the downside is near the $3,800 level.
The first major support is around the $3,600 zone or the 50% Fib retracement level of the recent wave from the $3,211 swing low to the $3,983 high. If further downward movement occurs, the next key support could be found around the $3,400 zone. A clear move below this support might send Ethereum’s price towards $3,250. Any additional losses might bring it down to the $3,120 level.
Technical Indicators
The MACD for ETH/USD is currently losing momentum in the bullish zone. Meanwhile, the RSI for ETH/USD has dropped below the 50 level.
Ethereum’s price is currently consolidating near $3,850 and supported by the 100-hourly Simple Moving Average. A short-term breakout pattern with resistance at $3,950 is forming on the hourly chart of ETH/USD. If Ethereum manages to surpass this resistance zone and hold above $3,800, it could resume its increase and potentially reach new highs above $4,000.
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