Ethereum, the prominent cryptocurrency, has been consolidating above the $3,650 support level, suggesting potential movement towards the $4,000 mark shortly. After testing the $3,840 resistance, ETH entered a consolidation phase, currently maintaining a position above $3,700. Observations on the hourly chart for the ETH/USD pair indicate a short-term contracting triangle formation with support at $3,690. As long as Ethereum stays above the $3,450 support, its upward trend might persist.
How Strong is Ethereum’s Price?
Ethereum’s price surged past the $3,500 and $3,650 resistance levels, outperforming Bitcoin in the process. The cryptocurrency hit a new weekly high at $3,838 and is now consolidating these gains. Ethereum has managed to stay above the 23.6% Fibonacci retracement level from $3,065 to $3,838, currently trading above $3,700.
What are the Key Resistance Levels?
The immediate resistance for Ethereum lies around $3,780, with the first major resistance at $3,840. If ETH surpasses this, it could initiate a new upward wave, eyeing the next significant resistance at $3,920. Successfully breaking through these levels might propel the price towards $4,000.
User-Usable Inferences: Key Takeaways
– Ethereum must remain above $3,450 to sustain upward momentum.
– Immediate resistance zones to watch include $3,780 and $3,840.
– A clear move above $4,000 could lead to testing resistance at $4,080 and $4,200.
– Critical support levels are at $3,690 and $3,650; falling below these could trigger larger market sell-offs.
What Could Trigger a Downside Break?
Despite its current strength, Ethereum faces the risk of a downside break if it struggles to overcome the $3,780 resistance. Key support at $3,690 aligns with the current trend line; maintaining this level is crucial to prevent significant price declines. A drop below the primary support at $3,650 could lead to further selling pressure, potentially pushing the price back to $3,450 or even $3,360 in a more pessimistic scenario.
In conclusion, Ethereum’s ability to stay above critical support levels and surpass key resistance points will determine its short-term trajectory, with a potential move towards $4,000 on the horizon.