Ethereum has recently exhibited a notable surge in its market performance, much to the delight of its investors. This uptick is largely credited to recent news regarding the anticipated Ethereum Exchange-Traded Fund (ETF). The cryptocurrency, a heavyweight in the digital assets arena, has tested key resistance levels, pushing its price up to $3,840, and is steadily progressing toward the $4,000 mark while maintaining its gains.
What Sparked Ethereum’s Latest Uptrend?
Ethereum has embarked on a fresh upward trajectory, trading above the $3,750 resistance zone. Currently, the price is holding above $3,700. The ETH/USD hourly chart indicates a short-term uptrend line with support around $3,710. This price rise followed reports of increased optimism for an ETH ETF, allowing it to break through resistance levels at $3,500 and $3,650, outperforming Bitcoin and reaching a new weekly high of $3,838.
Which Resistance Levels Are Critical?
The immediate resistance for Ethereum lies near $3,840. If this level is breached, the next significant resistance stands at $3,880. Surpassing this could push the price higher, with the next major resistance at $3,950. Breaking through $3,950 might propel the price towards the pivotal $4,000 level.
Key Insights for Investors
Investors might find the following actionable insights useful:
- Monitor the $3,840 resistance level for potential upward movements.
- Watch the $3,710 support level as a critical threshold for price stability.
- A break above $4,000 could open new profit avenues, targeting $4,080 and $4,200.
- Be aware of potential downward corrections if support levels fail to hold.
Levels to Watch for Downward Signals in ETH
Analyses suggest that failing to surpass the $3,840 resistance could trigger a downward correction. The first major support level is at $3,710, close to the trend line. Should this level break, the next support is at $3,620. A clear move below $3,620 could bring the price down to $3,450, and further failure might see Ethereum retreat to $3,380, indicating a notable risk for investors in the short term.
What Do Technical Indicators Say?
Technical indicators shed light on Ethereum’s status. The ETH/USD pair’s hourly MACD (Moving Average Convergence Divergence) is gaining bullish momentum, indicating possible short-term recovery. Meanwhile, the hourly RSI (Relative Strength Index) is correcting from the 75 region, suggesting an exit from the overbought zone and potential selling pressure.