Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of bullish momentum as its price indicators flash green. The price of Ethereum has been gradually increasing and is currently trading above the $3,800 resistance level. If it manages to break through the $3,880 and $3,920 resistance levels, it could experience further upside potential.
Ethereum has managed to hold onto its gains above the $3,800 level and is currently trading above $3,840, supported by the 100-hourly Simple Moving Average. Additionally, there is a bullish trend line forming with support near $3,840 on the hourly chart of ETH/USD.
In terms of price movement, Ethereum recently tested the $3,880 resistance zone after moving above the $3,820 and $3,840 levels. It is now consolidating gains within a range and has already tested the 23.6% Fibonacci retracement level. However, if it encounters further upward momentum, it could face resistance near the $3,880 level, with the $3,920 level being the first major resistance. A breakout above $3,920 could propel the price higher, potentially reaching the $4,000 and $4,080 levels.
If the bulls continue to push Ethereum above $4,080, it could further test the $4,200 and $4,320 resistance zones. However, if it fails to break the $3,880 resistance, there is a possibility of a downside correction. The initial support on the downside is anticipated near $3,840 and the bullish trend line. A further decline may push the price towards the $3,800 support zone and the 50% Fibonacci retracement level. If these levels are breached, the price could drop towards $3,720 and even the $3,650 level in the near term.
As for the technical indicators, the MACD for ETH/USD is showing an increasing bullish momentum, while the RSI is now above the 50 zone, indicating positive market sentiment.
In conclusion, Ethereum is currently in a favorable position, indicating the potential for more upside movement. However, traders and investors should closely monitor key resistance and support levels, such as $3,880 and $3,800, respectively, to gauge further market direction.