Key Points:
– Ethereum is maintaining its gains above the support zone of $3,700.
– On the daily chart, ETH/USD broke through a short-term contracting triangle with resistance at $3,800.
– Once it surpasses the resistance zone of $4,000, the price could experience bullish momentum.
Ethereum (ETH) has once again surpassed the $3,800 mark, indicating the potential for a surge of over 10% if it can settle above the levels of $3,950 and $4,000.
After a significant rally following the approval of the ETH ETF, the bears prevented further gains above the $4,000 resistance level. Similar to Bitcoin, Ethereum experienced a minor pullback from the $3,975 zone, dipping below the levels of $3,920 and $3,880.
However, the bulls remained active above the $3,700 zone, and the price remained comfortably above the 50-day simple moving average (blue), despite testing the 23.6% Fibonacci retracement level of the upward movement from the swing low of $2,870 to the high of $3,975.
Recently, Ethereum initiated another increase from the $3,700 zone, breaking through the resistance levels of $3,780 and $3,800. Additionally, it cleared a short-term contracting triangle with resistance at $3,800 on the daily chart, indicating positive signs and a higher chance of further gains.
In terms of resistance, the immediate level is around $3,900, with the first major resistance near $3,950. The main resistance lies at $4,000, and if the price successfully breaks through this level, it could trigger another increase. In this scenario, the price may recover and test the resistance at $4,080, followed by the next major resistance at $4,250.
If there is a successful daily close above the $4,250 resistance, Ether could potentially reach $4,400. Further gains might even lead to a move towards the $5,000 zone in the near future.
However, there is also a possibility of another downside correction for Ethereum. The first major support level is around $3,700. If the price breaks below this support zone, there is a risk of a larger pullback, with the price potentially testing the $3,550 level.
The next major support lies near the 50% Fibonacci retracement level of the upward movement, which is at $3,420. A downside break and a daily close below $3,420 might result in a test of the $3,300 support and the 50-day simple moving average (blue).
Overall, Ethereum’s price is currently maintaining its gains above the levels of $3,720 and $3,700. If it manages to clear the resistance at $4,000, there is a possibility of a fresh surge in the near future.