Ethereum Gears Up for a Record High: Can It Break Through?
Ethereum price started a sharp rise above the $3,950 area. ETH is consolidating gains and may target a break above the $4,150 resistance zone.
- Ethereum started a sharp rise above $3,950 and $4,000.
- The price is trading below $3,980 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support at $3,940 on the hourly chart of ETH/USD (data via Kraken).
- The pair is likely to continue rising if it breaks the $4,080 and $4,120 resistance levels.
Ethereum price regains momentum
Ethereum price holds steady, extends gains above $3,880, but underperforms Bitcoin. ETH was able to break above the $3,980 and $4,000 resistance levels.
Bulls pushed the pair above the $4,050 and $4,080 resistance levels. A high of $4,107 was formed before the pullback. It fell slightly below $4,000. Trading for as low as $3,946, currently rise.
The price broke above the 23.6% Fib retracement level of the downward move from the $4,107 swing high to $3,946 low. Ethereum price is currently trading above $4,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support at $3,940 on the hourly chart of ETH/USD.
On the bright side, the price seems to be facing a hurdle near the $4,025 level. The first major resistance level is near $4,070, the 76.4% Fib retracement level of the downward move from the $4,107 high to $3,946 low.
Major resistance is now forming near $4,120. A clear break above the $4,120 resistance may push the price towards the $4,250 resistance. An upside break above the $4,250 resistance may bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $4,350 resistance zone or even $4,500.
ETH downside correction?
If Ethereum fails to break the $4,120 resistance, it may start another decline. Initial support on the downside is near $3,980. The first major support is located near the $3,940 area.
A clear break below the $3,940 support could push the price towards the $3,880 support. Any further losses may push the price towards the $3,800 support in the near term. The next key support is located at $3,750.
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 – $3,940
Major Resistance – $4,120
