Ethereum has seen a notable increase, surpassing the $3,650 level, with an ongoing consolidation that indicates the potential for further gains above the $3,750 resistance. The cryptocurrency’s upward movement aligns with a recovery phase that has gained traction, setting a foundation for future price climbs.
Currently, Ethereum is trading above the $3,650 level and the 100-hourly Simple Moving Average, signaling a healthy trend. A bullish trend line has formed, establishing support around the $3,660 level. This trend line also coincides with the 50% Fibonacci retracement level of the rally that originated from a low of $3,593 to a high of $3,742. The ability to maintain price above these pivotal levels suggests a strong underlying momentum.
However, Ethereum does face resistance near the $3,710 level. The primary challenge lies at the $3,750 level, with further significant resistance occurring around $3,780. Should the price successfully breach the $3,780 resistance, it could pave the way for a more substantial advance towards the $3,850 level and potentially up to $3,920 or even $4,000 in the near future.
On the downside, if Ethereum fails to overcome the $3,750 barrier, it may experience a pullback. The first level of support to watch is near $3,660, closely followed by the $3,620 level. Should the price dip below $3,620, it could signal a downward trend that may lead towards the next support levels at $3,550 and ultimately $3,500, with a critical support line existing at $3,420.
Technical indicators such as the MACD and RSI suggest a bullish sentiment, bolstering the case for a potential price increase if market conditions remain favorable.
