Ethereum price started a recovery wave above $3,880. ETH is now rising and could target more gains if it clears the USD 4,050 resistance.
- Ethereum started a new recovery above USD 3,800 and USD 3,880.
- The price is trading above USD 3,920 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trendline with resistance at $3,940 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it trades above $4,050.
Ethereum price rises again
Ethereum’s price struggled to break above $4,050 and corrected most of the gains, as did Bitcoin. ETH price fell below the USD 4,000 and USD 3,800 levels.
It even tested the $3,680 zone. A low was formed at $3,677 and the price is now correcting losses. There was quite a bit of movement above the 50% Fib retracement level of the recent decline, from the $4,292 swing high to the $3,677 low.
Additionally, there was a break above a key bearish trendline with resistance at $3,940 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,920 and the 100-hourly Simple Moving Average.
On the upside, the price could face resistance near the $4,050 level and the 61.8% Fib retracement level from the recent decline from the $4,292 swing high to the $3,677 low. The next major resistance is near the $4,120 level. The first major resistance is around the $4,220 level.
A clear move above the USD 4,220 resistance could send the price towards the USD 4,320 resistance. An upside break above the $4,320 region could call for more gains in the coming sessions. In the mentioned case, Ether could rise towards the resistance zone of $4,440 or even $4,500 in the short term.
Another drop in ETH?
If Ethereum fails to clear the USD 4,050 resistance, it could trigger another decline. The initial downside support is near the $3,940 level. The first major support is near the $3,880 zone.
A clear move below the USD 3,880 support could push the price towards the USD 3,820 support. Any further losses could send the price towards the $3,680 region in the near term. The next major support is at $3,620.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 zone.
Major support level – $3,880
Major resistance level – $4,050