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Ethereum price extended its increase toward $3,950. ETH is now consolidating gains and might aim for a move above the $4,000 resistance.
- Ethereum traded to a new multi-month high above $3,940.
- The price is trading above $3,850 and the 100-hourly Simple Moving Average.
- There was a break above a short-term bullish flag pattern with resistance at $3,830 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its increase if it clears the $3,940 resistance zone.
Ethereum Price Remains In Strong Uptrend
Ethereum price extended its rally above the $3,850 level, unlike Bitcoin. BTC failed to extend gains above the $68,000 zone and is now consolidating gains. However, ETH silently moved higher above $3,850.
There was a break above a short-term bullish flag pattern with resistance at $3,830 on the hourly chart of ETH/USD. The pair broke the $3,900 resistance zone. It traded to a new multi-month high above $3,940 and recently started a consolidation phase.
There was a pullback below the $3,900 level. The price tested the 23.6% Fib retracement level of the recent increase from the $3,716 swing low to the $3,943 high.
Ethereum is now trading above $3,850 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $3,920 level. The first major resistance is near the $3,940 level. The next major resistance is near $4,000, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
The next stop for the bulls could be near the $4,080 level. If there is a move above the $4,080 resistance, Ether could even rally toward the $4,220 resistance. Any more gains might call for a test of $4,350.
Are Dips Limited In ETH?
If Ethereum fails to clear the $3,940 resistance, it could start another downside correction. Initial support on the downside is near the $3,850 level.
The first major support is near the $3,800 zone or the 76.4% Fib retracement level of the recent increase from the $3,716 swing low to the $3,943 high. The next key support could be the $3,720 zone. A clear move below the $3,720 support might send the price toward $3,550. Any more losses might send the price toward the $3,400 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,720
Major Resistance Level – $3,940
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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