Ethereum price rebounded to $3,940 and then plummeted. ETH is currently consolidating near $3,850 and we expect further upside in the near term.
- Ethereum began consolidating after rebounding towards the $3,940 resistance zone.
- The price is trading above $3,720 and the 100-hour simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a major bullish trendline forming with support at $3,720.
- Unless a break occurs below the $3,620 support, the pair may continue to rise.
Ethereum price gains more.
Ethereum price rose above the $3,700 and $3,750 resistance levels. ETH has outperformed Bitcoin and even surpassed the $3,880 level. A new weekly high was set at $3,943 before a sharp decline occurred.
The price fell below the $3,800 and $3,750 levels. A low was formed at the $3,530 level and the price recovered most of its losses. It is back above the 50% Fib retracement level moving down from the $3,943 swing high to the $3,530 low.
Ethereum is currently trading above $3,720 and the 100-hour simple moving average. Additionally, there is a major bullish trendline on the hourly chart of ETH/USD with support at $3,720.
Immediate resistance is near the $3,845 level or the 76.4% Fib retracement level for a downside move from the $3,943 swing high to the $3,530 low. The first major resistance is near the $3,880 level. An upside reversal above the $3,880 resistance could push the price higher.
The next major resistance level is $3,940, above which the price may gain traction and advance towards the $4,000 level. A clear move above the $4,000 level could push the price higher to test the $4,080 resistance. Further gains could lead Ether towards the $4,200 resistance zone.
Another decline in ETH?
If Ethereum fails to clear the $3,840 resistance, another downward correction could begin. Initial support for the downside is near the $3,720 level and trend line.
The next major support level is near $3,620. A clear break below the $3,620 support could push the price towards $3,550. More losses could push the price towards the $3,390 level in the near term.
technical indicators
Hourly MACD – ETH/USD MACD is gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is still above the 50s.
Key Support Level – $3,720
Key Resistance Level – $3,880