Ethereum’s price is once again on the rise, breaking above the $3,800 resistance level. It is currently consolidating near $3,850 and showing signs of a potential bullish breakout above $4,000 in the near future.
There are several factors contributing to this positive outlook for Ethereum. Firstly, it has surpassed the $3,750 resistance and is trading above both the 100-hourly Simple Moving Average and the 76.4% Fib retracement level. Additionally, a key bullish trend line has formed with support at $3,780 on the hourly chart of ETH/USD.
If Ethereum continues to trend upwards, the immediate resistance levels to watch are $3,880 and $3,920. A breakout above these levels could lead to further gains, potentially reaching $4,000 and even $4,080. In the event of a clear move above $4,080, the next major resistance levels are at $4,220 and $4,350.
However, if Ethereum fails to clear the $3,880 resistance, a downside correction may occur. The initial support levels to monitor are $3,800 and the aforementioned bullish trend line. If the price drops further, it could test the $3,735 zone, and potentially even drop towards $3,630 or the $3,540 level in the near term.
In terms of technical indicators, the MACD for ETH/USD is gaining momentum in the bullish zone, while the RSI remains above the 50 zone, indicating ongoing bullish sentiment.
Overall, Ethereum’s price is showing promising signs of a bullish breakout, but caution should always be exercised as market conditions can change rapidly.