TA: Ethereum Breaks Key Hurdle, Why There Could Be a Strong Rally

Ethereum is gaining pace above the $3,950 zone against the US Dollar. ETH price is showing positive signs and the bulls might aim a larger increase above $4,100

• Ethereum started a fresh increase and even climbed above the $4,000 resistance zone.
• The price is trading above $4,000 and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $3,960 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could accelerate higher above the $4,050 and $4,080 resistance levels.

Ethereum Price Gains Pace

Ethereum started a steady recovery wave above the $3,850 and $3,880 resistance levels. ETH even climbed above the $4,000 level and the 100 hourly simple moving average.

During the increase, the price cleared the 76.4% % Fib retracement level of the downward move from the $4,035 swing high to $3,750 low. Besides, there was a break above a major bearish trend line with resistance near $3,960 on the hourly chart of ETH/USD.

The pair is now trading near the $4,035 swing high. It is trading above $4,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $4,050 level. The next major resistance is near the $4,100 level. It is near the 1.236 Fib extension level of the downward move from the $4,035 swing high to $3,750 low.

Source: ETHUSD on TradingView.com

A clear move above the $4,100 level could push the price further higher in the near term. The next stop for the bulls could be $4,250. A close above the $4,250 level may possibly spark a move towards the $4,350 level.

Fresh Drop in ETH?

If ethereum fails to start a fresh increase above the $4,050 level, it could start a fresh decline. An initial support on the downside is near the $3,960 level.

The first key support is now forming near the $3,920 level and the 100 hourly simple moving average. If there is a clear break below the $3,920 support, the price could extend losses. The next major support is $3,850, below which there is a risk of a move towards the $3,750 level.

Technical Indicators

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 50 level.

Major Support Level – $3,920

Major Resistance Level – $4,100