Ethereum’s price is currently going through a consolidation phase above the $3,650 support level. This suggests that the cryptocurrency is preparing itself for the next upward move, potentially towards the $4,000 mark in the near future.
Following a test of the $3,840 resistance zone, Ethereum entered a consolidation phase. It is currently trading above $3,700 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a short-term contracting triangle is forming with support at $3,690. Unless there is a break below the $3,450 support, the pair could continue its upward movement.
Ethereum managed to extend its gains in recent times, surpassing both the $3,500 and $3,650 resistance levels. In fact, it even outperformed Bitcoin and reached above the $3,800 level. Although it is currently consolidating its gains, Ethereum is holding steady above the 23.6% Fib retracement level from the $3,065 swing low to the $3,838 high. Additionally, it is trading above $3,700 and the 100-hourly Simple Moving Average.
There is an immediate resistance near the $3,780 level, with the first major resistance residing at $3,840. A breakthrough above this resistance could prompt the price to climb higher. The subsequent key resistance level stands at $3,920, and if surpassed, the price may gain further traction and rise towards $4,000.
In the event that the price manages to move above the $4,000 level, it could rise further and test the $4,080 resistance. Further gains could potentially push Ether towards the $4,200 resistance zone.
However, if Ethereum fails to surpass the $3,780 resistance, it might experience a downside correction. The initial support on the downside is near $3,690, along with the trend line. The $3,650 zone serves as the next major support, and a clear move below it could send the price towards $3,450 or the 50% Fib retracement level.
Looking at the technical indicators, the MACD for ETH/USD is showing decreasing momentum within the bullish zone, while the RSI remains above the 75 zone.
In summary, Ethereum’s price is currently consolidating above key support levels, indicating its readiness for the next upward move. A breakthrough above key resistances may lead to significant gains, while a downside correction could be expected if support levels are breached.