Ethereum price struggled to continue higher above the $3,940 zone. ETH is now consolidating gains and might soon aim for a move toward $4,000.
- Ethereum started a fresh increase above the $3,840 and $3,880 levels.
- The price is trading above $3,800 and the 100-hourly Simple Moving Average.
- There is a bearish trend line forming with resistance at $3,840 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it remains supported above the $3,725 zone in the near term.
Ethereum Price Holds Support
Ethereum price struggled to extend gains above the $3,940 level, like Bitcoin. ETH price started a downside correction from the $3,939 high and traded below $3,900.
The price traded below the $3,820 support level and settled below the 23.6% Fib retracement level of the upward move from the $3,515 swing low to the $3,939 high. Moreover, there is a bearish trend line forming with resistance at $3,840 on the hourly chart of ETH/USD.
However, the price is steady above the $3,720 support and the 50% Fib retracement level of the upward move from the $3,515 swing low to the $3,939 high. Ethereum price is now trading above $3,800 and the 100-hourly Simple Moving Average.
On the upside, the price could face resistance near the $3,840 level. The next key resistance is near the $3,880 level. The first major resistance is near the $3,940 level. A clear move above the $3,940 resistance might send the price toward the $3,965 resistance.
An upside break above the $3,965 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,000 resistance zone or even $4,120 in the near term.
Another Drop In ETH?
If Ethereum fails to clear the $3,840 resistance, it could start a downside correction. Initial support on the downside is near the $3,720 level. The first major support sits near the $3,680 zone.
A clear move below the $3,680 support might push the price toward the $3,650 support. Any more losses might send the price toward the $3,550 support level in the near term. The next key support sits at $3,420.
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 below the 50 zone.
Major Support Level – $3,720
Major Resistance Level – $3,840
Credit: Source link
