Ethereum’s price recently experienced a dip after a rally towards the $3,940 mark. However, it has since stabilized around the $3,850 range and is poised for further gains in the near future.
Key points to consider are:
– Ethereum began consolidating after reaching the $3,940 resistance zone.
– The price is currently trading above $3,720 and the 100-hourly Simple Moving Average, indicating bullish momentum.
– A bullish trend line has formed with support at $3,720 on the hourly chart of ETH/USD.
– Unless there is a break below the $3,620 support, the pair is expected to continue moving upward.
Despite the temporary decline, Ethereum has shown resilience and outperformed Bitcoin, surpassing the $3,880 level. It even reached a new high for the week at $3,943 before experiencing the sharp drop.
However, Ethereum quickly recovered from the losses and is now trading above the 50% Fibonacci retracement level. The price is also above the 100-hourly Simple Moving Average, indicating a positive outlook.
Immediate resistance levels are expected near $3,845 and $3,880, followed by a key resistance at $3,940. If Ethereum breaks above $4,000, it may gain traction and test the $4,080 resistance. Further gains could potentially propel the price towards the $4,200 zone.
Nevertheless, if Ethereum fails to clear the $3,840 resistance, it may undergo another downside correction. In such a scenario, initial support lies around the $3,720 level and the aforementioned bullish trend line. The next major support level is near $3,620, with further losses potentially pushing the price towards $3,550 or even $3,390 in the short term.
Based on technical indicators, the hourly MACD for ETH/USD suggests increasing bullish momentum, while the hourly RSI remains above the 50 zone.
Overall, exciting trading opportunities lie ahead for Ethereum as it continues to navigate through its price movements.