Ethereum’s price is currently facing resistance at the $4,000 level, leading to a period of consolidation around $3,600. However, analysts expect that any pullbacks in the price will be limited.
Ethereum recently reached a multi-month high above $3,980, indicating a strong bullish trend. Currently, it is trading close to $3,850, near the 100-hourly Simple Moving Average. There is a short-term breakout pattern forming, with resistance at $3,950.
If Ethereum manages to clear the $3,950 resistance zone, it could resume its upward movement. The immediate resistance on the upside is near $3,900. Beyond that, the next major resistance levels are around $3,940 and $4,000. If the price breaks above $4,000, it might gain significant bullish momentum and move towards $4,120 or even $4,220. Further gains may prompt a test of $4,350.
However, if Ethereum fails to surpass the $3,950 resistance, it could trigger a downside correction. In this scenario, the initial support lies around $3,800. The first major support is near the $3,600 zone, followed by the $3,400 zone. A significant break below $3,400 could send the price towards $3,250 or even $3,120.
Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI is now below the 50 level.
As always, it is crucial to conduct thorough research and analysis before making any investment decisions. This information is provided solely for educational purposes and should not be considered as financial advice.