Ethereum Price Reaches Resistance — Breakout Could Signal Fresh Upside Leg

[Ben Graham]

Ethereum price started a recovery wave above $3,880. ETH is now rising and might aim for more gains if it clears the $4,050 resistance.

• Ethereum started a fresh recovery above $3,800 and $3,880.
• The price is trading above $3,920 and the 100-hourly Simple Moving Average.
• There was a break above a key bearish trend line with resistance at $3,940 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it trades above $4,050.

Ethereum Price Rises Again

Ethereum price struggled to settle above $4,050 and corrected most gains, like Bitcoin. ETH price declined below the $4,000 and $3,800 levels.

It even tested the $3,680 zone. A low was formed at $3,677 and the price is now correcting losses. There was a decent move above the 50% Fib retracement level of the recent decline from the $4,292 swing high to the $3,677 low.

Besides, there was a break above a key bearish trend line with resistance at $3,940 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,920 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance near the $4,050 level and the 61.8% Fib retracement level of the recent decline from the $4,292 swing high to the $3,677 low. The next key resistance is near the $4,120 level. The first major resistance is near the $4,220 level.

A clear move above the $4,220 resistance might send the price toward the $4,320 resistance. An upside break above the $4,320 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,440 resistance zone or even $4,500 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $4,050 resistance, it could start a fresh decline. Initial support on the downside is near the $3,940 level. The first major support sits near the $3,880 zone.

A clear move below the $3,880 support might push the price toward the $3,820 support. Any more losses might send the price toward the $3,680 region in the near term. The next key support sits at $3,620.

Technical Indicators

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

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

Major Support Level – $3,880

Major Resistance Level – $4,050