Ethereum gained pace above the $3,700 resistance zone against the US Dollar. ETH price is showing positive signs and it could even surge above $4,000.
- Ethereum started a fresh increase above the $3,650 and $3,750 resistance levels.
- The price is now trading above $3,800 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its rally if there is a clear break above $3,850 and $3,920.
Ethereum Price Aims Larger Increase
Ethereum settled above the $3,500 level to move into a positive zone. ETH started a fresh increase above the $3,650 resistance zone and the 100 hourly simple moving average.
The upward move was such that the price cleared the $3,750 resistance. Finally, the price spiked above $3,800 and traded as high as $3,838. It is now consolidating gains above the $3,800 level. It is well above the 23.6% Fib retracement level of the recent rally from the $3,414 swing low to $3,838 high.
There is also a major bullish trend line forming with support near $3,800 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $3,840 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $3,850 level, above which the price might start a fresh surge. In the stated case, the price could climb towards the $4,000 level. Any more gains could set the pace for a move towards the $4,200 level in the near term.
Dips Supported in ETH?
If ethereum fails to continue higher above the $3,850 and $3,920 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,800 level.
The first key support is now forming near the $3,750 level. The main support is now forming near the $3,650 and $3,625 levels. It is near the 50% Fib retracement level of the recent rally from the $3,414 swing low to $3,838 high. If there is a downside break below the $3,650 and $3,625 support levels, the price could decline further. The next key support is near $3,550.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 60 level.
Major Support Level – $3,750
Major Resistance Level – $3,850
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