Ethereum, the second-largest cryptocurrency by market cap, has recently made headlines in the digital currency market. The cryptocurrency’s price has seen a decent increase above the $3,750 zone, consolidating its gains and potentially eyeing a move above the $3,980 resistance zone. This comes as Ethereum continues to trade below $3,800 and the 100-hourly Simple Moving Average.
There’s a notable bullish trend line forming with support at $3,840 on the hourly chart of ETH/USD (data feed via Kraken). The pair could continue to rise if it manages to clear the $3,950 and $3,980 resistance levels, further solidifying its positive momentum.
In a noteworthy development, Ethereum’s price outpaced that of Bitcoin, the market’s largest cryptocurrency. Ethereum remained stable and extended its gains above $3,750, managing to climb above the $3,800 and $3,880 resistance levels. This was primarily driven by the bulls, who pushed the pair above the $3,920 and $3,950 resistance levels.
The price peaked at $3,988 and is currently consolidating gains. Despite a minor decline below the $3,920 level and a dip below the 23.6% Fib retracement level of the upward move from the $3,527 swing low to the $3,988 high, Ethereum remains in a positive position.
Currently, Ethereum is trading above $3,800 and the 100-hourly Simple Moving Average, with a bullish trend line forming with support at $3,840 on the hourly chart of ETH/USD. On the upside, the price is encountering hurdles near the $3,950 level, with the first significant resistance near the $3,980 mark.
The main resistance is now forming near the $4,000 level. A clear move above this resistance could potentially propel the price toward the $4,150 resistance. From there, a further break might call for more gains in the coming sessions, potentially pushing Ether toward the $4,250 resistance zone or even $4,320.
However, if Ethereum fails to clear the $3,980 resistance, it could trigger another decline. Initial support on the downside is near the $3,840 level and the trend line. The first major support is near the $3,750 zone or the 50% Fib retracement level of the upward move from the $3,527 swing low to the $3,988 high.
A clear move below the $3,750 support might push the price toward the $3,665 support. Any further losses might send the price toward the $3,550 support level in the near term. The next key support sits at $3,500.
The technical indicators suggest a bullish momentum for ETH/USD. The MACD for ETH/USD is gaining momentum in the bullish zone, and the RSI for ETH/USD is now above the 50 zone. The major support level lies at $3,840, and the major resistance level is at $3,980.
With these developments, Ethereum continues to be a cryptocurrency to watch in the ever-evolving digital currency market.
