Ethereum Breaks Key Hurdle, Why There Could Be a Strong Rally

Date:

Ethereum has been rising faster than the US Dollar’s $3,950 area. The ETH price has been showing encouraging signs. Bulls could aim to increase it above $4,100.

  • Ethereum experienced a renewed increase in trading and even broke the $4,000 barrier.
  • The 100-hourly moving average is at $4,000, and the price trades above that.
  • On the hourly chart of Ethereum/USD, there was an upward movement above a significant bearish trend line. Resistance is near $3960. (Data feed via Kraken).
  • This could allow the pair to move higher than $4,050/$4,080 resistance levels.

Ethereum price gains pace

Ethereum began a gradual recovery above the resistance levels of $3,850, and $3,880. ETH rose above the $4,000 mark and the 100-hourly simple moving average.

The price reached the 76.4% Fib retracement level for the downmove from $4,035 swing high, to $3,750 bottom, during the rise. A break was also seen above the major bearish trendline with resistance at $3,960 in the hourly chart for ETH/USD.

Now, the pair trades near $4,035 swing high. The pair is currently trading at $4,000 above the simple moving average of 100 hours. The $4,050 mark is the immediate resistance. Near the $4,100 mark is the next significant resistance. This is close to the 1.236 Fib extension of the downward swing from the $4,035 swing low to the $3,750 high.

Ethereum Price

Source: TradingView.com ETHUSD

In the short term, a clear rise above $4,100 could drive the price higher. Next stop for bulls may be at $4,250. The bulls could move to the $4.350 level if they close above $4.250.

The Latest Drop in ETH

If the $4,050 mark is not reached, ethereum could begin a new decline. The $3,960 level is a support area for the downside.

The $3,920 support and the 100 hourly simple movement average are the key supports. The price may lose more if it breaks below the $3920 level. There is an opportunity for a break below the $3,920 support. Below this level, there could be a shift towards the $3.750 level.

Indicators of technical importance

Hourly MACD – The bullish zone is seeing a rapid increase in MACDs for ETH/USD.

Hourly RSI – The RSI is at 50 for USD/ETH.

Major Support Level – $3,920

Major Resistance Level – $4,100

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