Ethereum has shown significant upward movement, beginning its ascent above the $3,650 level and continuing to strengthen. Currently priced near $3,750, Ethereum is poised to potentially break through the formidable $3,900 resistance level.
The cryptocurrency began its upward trajectory after consistently trading above $3,500, echoing a similar rally seen in Bitcoin . Ethereum successfully surpassed key resistance benchmarks of $3,650 and $3,720, signaling a shift in market sentiment. The breakout above a crucial bearish trend line at $3,720 suggests that the bullish momentum could carry on if the price continues to break through levels of resistance at $3,850 and $3,900.
Trading dynamics indicate a temporary halt to the upward charge around the $3,850 level. The immediate significant resistance is set at approximately $3,890, aligning with the 76.4% Fibonacci retracement of the recent downward movement from the swing high of $4,015 to the low of $3,488. Further resistance is anticipated near the psychological $4,000 level, and any decisive movement over that threshold could likely drive prices toward $4,050 and eventually push them closer to $4,150 or even $4,220.
However, should Ethereum fail to breach the $3,890 resistance, a downward correction could ensue. Initial support is expected around the $3,800 level, followed closely by a major support zone near $3,750. A significant decline past this point could see prices testing the $3,650 and $3,550 levels, with a pivotal support level at $3,500 remaining critical in the near term.
Technical indicators are displaying bullish momentum, with the MACD showing positive signs and the Relative Strength Index (RSI) positioned above the neutral 50 level, suggesting continued interest in the asset.
