Ethereum has seen a notable upswing, recently surpassing the $3,900 level and showcasing a potential for further gains. The cryptocurrency is currently consolidating its position, aiming to break through the $4,000 resistance barrier.
After initially climbing above the $3,880 and $3,920 levels, Ethereum ’s price managed to achieve levels above $3,980. Notably, a significant upward shift occurred with the price moving past a previously established bearish trend line, marking the $3,900 level on its hourly chart. Following this, the price reached a peak of $4,019, followed by a period of consolidation, during which it slightly retraced below the $3,980 level.
As Ethereum continues to trade above the $3,880 level and the 100-hourly Simple Moving Average, it faces notable challenges near the $4,000 level. The immediate obstacle appears to be at the $4,020 level, while a more substantial resistance is developing around $4,050. Success in breaking above this latter resistance could propel Ethereum towards the $4,150 range, potentially leading to further advances toward the $4,250 or even $4,320 levels.
Conversely, if Ethereum struggles to surpass the $4,000 resistance, a decline may ensue. Initial support is identified near the $3,920 level, aligning with the 50% Fibonacci retracement of the prior upward movement. A significant breach below $3,880 could push the price further down to the $3,840 support level, with further declines possibly testing the $3,750 level. The next critical support level would fall at $3,650, should the downward momentum continue.
Currently, technical indicators paint a mixed picture. The hourly MACD shows increasing strength in the bullish zone, while the RSI remains above the neutral 50 level, suggesting that Ethereum retains potential for upward momentum despite looming resistance.
