Ethereum is consolidating above the $3,800 support zone against the US Dollar. ETH must clear the $3,900 and $3,950 resistance levels to continue higher in the near term.
Ethereum Price Eyes Upside Break
Ethereum started a fresh increase above the $3,750 resistance zone. ETH gained pace after it broke the $3,800 resistance zone and the 100 hourly simple moving average.
There was also a break above a key contracting triangle forming with resistance near $3,820 on the hourly chart of ETH/USD. The pair even spiked above $3,880, but there was no upside continuation above $3,920. A high was formed near $3,900 and it is now consolidating gains.
There was a break below the $3,850 level. Ether price traded below the 23.6% Fib retracement level of the upward move from the $3,742 swing low to $3,900 high.
It is now trading above $3,800 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $3,880 level. The next major resistance is near the $3,900 level, above which the price might start a fresh rally.
Source: ETHUSD on TradingView.com
The next key resistance is near the $3,920 level. Any more gains could increase the chances of a move above the $4,000 level. In the stated case, the price might rise towards the $4,120 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,880 and $3,900 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,820 level.
The 50% Fib retracement level of the upward move from the $3,742 swing low to $3,900 high is also near the $3,820 level. Any more downsides could lead the price towards the $3,780 support and the 100 hourly SMA. The next key support is near $3,750.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,820
Major Resistance Level – $3,900
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