Ethereum has been on a steady rise, with its price extending towards $3,950. The cryptocurrency is currently consolidating its gains and showing signs of potential further upward movement. It recently reached a multi-month high above $3,940 and is trading comfortably above $3,850 along with the 100-hourly Simple Moving Average. A break above a short-term bullish flag pattern with resistance at $3,830 on the hourly chart of ETH/USD indicates a positive outlook.
In comparison to Bitcoin, Ethereum has shown more strength in its price rally. While Bitcoin failed to extend gains above the $68,000 zone and is currently consolidating, Ethereum continued its upward movement above $3,850. This divergence in price performance between the two major cryptocurrencies highlights Ethereum’s bullish momentum in the current market.
The immediate resistance lies near the $3,920 level, followed by a major resistance at $3,940. If Ethereum manages to push past these levels, the next significant resistance zone is at $4,000, which could potentially trigger a strong bullish momentum towards the $4,080 level. Further gains might even lead to a rally towards the $4,220 resistance, with a possible test of $4,350 in the cards.
On the flip side, if Ethereum fails to break the $3,940 resistance, a downside correction could be initiated. Initial support is expected near the $3,850 level, followed by a major support zone at $3,800 or the 76.4% Fib retracement level. A clear downside break below the $3,720 support could signal a more significant correction towards $3,550 or even the $3,400 level.
Technical Indicators
The hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone, which could indicate a potential slowdown in the price increase. However, the hourly RSI for Ethereum is currently above the 50 level, suggesting a positive sentiment among traders.
Disclaimer
It is essential to note that the information provided in this article is for educational purposes only. It does not reflect the opinions of any specific entity on whether to buy, sell, or hold any investments. Investing in cryptocurrencies carries inherent risks, and it is strongly recommended to conduct thorough research and analysis before making any investment decisions. Users should use the information provided in this article at their own risk and discretion.