Ethereum: Bullish Momentum Above $3,950, Eyes $4,120 Resistance

Ethereum has shown strong bullish momentum, starting a decent rise above the $3,950 and $4,000 zones. The price is currently consolidating gains and could potentially aim for a breakout above the key resistance levels of $4,080 and $4,120, which could propel it towards higher price targets.

Key Levels and Support/Resistance Overview

Support Levels

Ethereum is supported by a bullish trend line at $3,940 on the hourly chart (ETH/USD). The price is holding steady above this level, providing a solid foundation for potential upward momentum. The next major support is at $3,880 and $3,800.

Resistance Levels

On the upside, Ethereum faces a key resistance near $4,025. If this is cleared, the immediate next resistance lies at $4,070, followed by $4,120, the main obstacle for further gains. A breakout above $4,120 could lead to a surge toward $4,250 and potentially even $4,350 or $4,500 in the coming sessions.

Recent Price Action and Momentum

Ethereum’s price initially struggled to maintain momentum but broke above $3,880 and $4,000. The bulls pushed the price past $4,050 and $4,080, setting a high at $4,107 before pulling back slightly. A minor decline to $3,946 occurred, but the price is now recovering, trading above $4,000 and holding above the 100-hour Simple Moving Average.

Ethereum has also surpassed the 23.6% Fib retracement level of the downward move from the $4,107 high to the $3,946 low, signaling the potential for further upside. However, it must overcome the $4,025 resistance to continue its upward trend.

Outlook for Ethereum Price

Bullish Scenario

Ethereum’s price is gaining momentum as indicated by the bullish MACD and the RSI above 50. If the price clears the $4,120 resistance, a rally toward $4,250 could be expected, with the possibility of $4,350 or even $4,500 in the near term.

Bearish Scenario

A failure to break above $4,120 could trigger a downside correction. Initial support is at $3,980, followed by $3,940. A move below $3,940 could send Ethereum towards $3,880 or $3,800 before testing stronger support levels.

Technical Indicators

• Hourly MACD: Gaining momentum in the bullish zone.
• Hourly RSI: Currently above the 50 mark, indicating bullish strength.

Ethereum’s price is positioned for potential upward movement, but traders should be mindful of the $4,120 resistance level, as a break above this could signal further gains. However, if Ethereum fails to clear this level, a retreat toward the key support zones remains a possibility.

Read more about Ethereum (ETH):

ETH to USD: Convert Ethereum to US Dollar

Ethereum (ETH), Market Cap, Price Today & Chart History

How to buy Ethereum (ETH)

FAQs

What are the key resistance levels for Ethereum's price? Ethereum faces key resistance at $4,025, followed by more significant levels at $4,070 and $4,120. A breakout above $4,120 could lead to further upward movement towards $4,250, and potentially higher.

What support levels should traders watch for Ethereum? Ethereum is supported by a bullish trend line at $3,940, with additional support at $3,880 and $3,800. These levels serve as key areas to watch if the price experiences a pullback.

What is the outlook for Ethereum’s price in the near term? Ethereum’s price shows strong bullish momentum, with indicators like the MACD and RSI signaling potential for further gains. If the price breaks above $4,120, Ethereum could target higher levels, such as $4,250 or even $4,500. However, failure to clear $4,120 could lead to a correction toward support levels like $3,940 or $3,800.

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