Ethereum Eyes Bitcoin’s Lead: Is a Similar Surge Possible?
Ethereum price started a sharp rise above the $3,900 area. ETH is consolidating gains and may target a break above the $4,000 resistance zone.
- Ethereum started a sharp rise above $3,880 and $3,920.
- The price is trading below $3,920 and the 100 hourly simple moving average.
- ETH/USD broke above a key bearish trend line with resistance at $3,900 on the hourly chart (data feed via Kraken).
- The pair is likely to continue rising if it breaks the $3,980 and $4,020 resistance levels.
Ethereum price faces resistance
Ethereum price holds steady, extends gains above $3,850, but underperforms Bitcoin. ETH managed to break above the $3,920 and $3,980 resistance levels.
There was a break above a key bearish trend line with resistance at $3,900 on the hourly chart of ETH/USD. Bulls pushed the pair above the $4,000 and $4,010 resistance levels. Highs were formed at $4,019 and current prices are consolidate gains. It fell slightly below $3,980.
The price even fell below the 23.6% Fib retracement level of the upward move from the $3,831 swing low to $4,019 high. Ethereum price is currently trading above $3,880 and the 100 hourly simple moving average.
On the bright side, the price seems to be facing a hurdle near the $4,000 level. The first major resistance level is near $4,020. Major resistance is currently forming near $4,050. A clear break above the $4,050 resistance may push the price towards the $4,150 resistance.
An upside break above the $4,150 resistance may bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $4,250 resistance zone or even $4,320.
ETH falling again?
If Ethereum fails to break above the $4,000 resistance, it may start another decline. Initial support on the downside is near $3,920 and the 50% Fib retracement level of the upward move from the $3,831 swing low to $4,019 high. The first major support is located near the $3,880 area.
A clear break below the $3,880 support could push the price towards the $3,840 support. Any further losses could push the price towards the $3,750 support in the near term. The next key support is located at $3,650.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
hourly relative strength index – The RSI for ETH/USD is currently above the 50 area.
Major Support – $3,920
Major Resistance – $4,000
