Ethereum price has started to rise well above the $3,900 area. ETH is consolidating gains and may aim to move above the $4,000 resistance area.
- Ethereum started a nice increase above $3,880 and $3,920.
- The price is trading below the $3,920 level and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance at $3,900 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue rising if it crosses the $3,980 and $4,020 resistance levels.
Ethereum price is facing resistance
Ethereum price remained stable and extended its gains above $3,850 but underperformed Bitcoin. ETH managed to rise above the $3,920 and $3,980 resistance levels.
There was a break above the major downtrend line with resistance at $3,900 on the hourly chart of ETH/USD. The bulls pushed the pair above the $4,000 and $4,010 resistance levels. The high was formed at $4,019 and the price is now consolidating its gains. There was a slight decline below the $3,980 level.
The price also fell below the 23.6% Fibonacci retracement level of the upward move from the swing low at $3,831 to the swing high at $4,019. Ethereum price is now trading above $3,880 and the 100 hourly simple moving average.
On the upside, the price appears to be facing hurdles near the $4,000 level. The first major resistance is located near the $4,020 level. Major resistance is now forming near $4,050. A clear move above the $4,050 resistance could send the price towards the $4,150 resistance.
A bullish break above the $4,150 resistance may require further gains in the coming sessions. In the mentioned case, the price of ether could rise towards the resistance area of $4,250 or even $4,320.
Another drop in ETH?
If Ethereum fails to break above the $4,000 resistance level, it could start another decline. Initial support on the downside is near the $3,920 level and the 50% Fib retracement level of the upward move from the $3,831 swing low to the $4,019 swing high. The first major support is near the $3,880 area.
A clear move below the $3,880 support level could push the price towards the $3,840 support level. Any further losses could send the price towards the $3,750 support level in the near term. The next major support is at $3,650.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 area.
Key Support Level – $3,920
Major resistance level – $4000
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