Ethereum Price Stays Strong – Elevated Price Hints at Bullish Continuation

[Ben Graham]

Ethereum price extended its increase above the $3,880 zone. ETH is now consolidating gains and might soon aim for a move toward $4,000.

• Ethereum started a fresh increase above the $3,820 and $3,880 levels.
• The price is trading near $3,800 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support at $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it remains supported above the $3,720 zone in the near term.

Ethereum Price Corrects Some Gains

Ethereum price remained supported above the $3,720 level and started a fresh increase, like Bitcoin. ETH price traded above the $3,800 and $3,850 resistance levels.

There was a move above the $3,880 level. The price tested the $3,920 zone. A high was formed at $3,939 and the price is now correcting gains. There was a move below the 23.6% Fib retracement level of the upward move from the $3,515 swing low to the $3,939 high.

Besides, there was a break below a key bullish trend line with support at $3,800 on the hourly chart of ETH/USD. Ethereum price is now trading near $3,800 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance near the $3,820 level. The next key resistance is near the $3,840 level. The first major resistance is near the $3,880 level. A clear move above the $3,880 resistance might send the price toward the $3,940 resistance.

An upside break above the $3,940 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,000 resistance zone or even $4,120 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $3,820 resistance, it could start a downside correction. Initial support on the downside is near the $3,720 level. The first major support sits near the $3,700 zone.

A clear move below the $3,700 support might push the price toward the $3,650 support. Any more losses might send the price toward the $3,550 support level in the near term. The next key support sits at $3,420.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,720

Major Resistance Level – $3,820