TA: Ethereum Breaks Key Hurdle, Why There Could Be a Strong Rally
Ethereum is gaining pace above the $3,950 zone against the US Dollar. ETH price is showing positive signs and the bulls might aim a larger increase above $4,100
Ethereum started a fresh increase and even climbed above the $4,000 resistance zone.
The price is trading above $4,000 and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $3,960 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate higher above the $4,050 and $4,080 resistance levels.
Ethereum Price Gains Pace
Ethereum started a steady recovery wave above the $3,850 and $3,880 resistance levels. ETH even climbed above the $4,000 level and the 100 hourly simple moving average.
During the increase, the price cleared the 76.4% % Fib retracement level of the downward move from the $4,035 swing high to $3,750 low. Besides, there was a break above a major bearish trend line with resistance near $3,960 on the hourly chart of ETH/USD.
The pair is now trading near the $4,035 swing high. It is trading above $4,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $4,050 level. The next major resistance is near the $4,100 level. It is near the 1.236 Fib extension level of the downward move from the $4,035 swing high to $3,750 low.
Source: ETHUSD on TradingView.com
A clear move above the $4,100 level could push the price further higher in the near term. The next stop for the bulls could be $4,250. A close above the $4,250 level may possibly spark a move towards the $4,350 level.
Fresh Drop in ETH?
If ethereum fails to start a fresh increase above the $4,050 level, it could start a fresh decline. An initial support on the downside is near the $3,960 level.
The first key support is now forming near the $3,920 level and the 100 hourly simple moving average. If there is a clear break below the $3,920 support, the price could extend losses. The next major support is $3,850, below which there is a risk of a move towards the $3,750 level.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,920
Major Resistance Level – $4,100