Ethereum price started a recovery wave above $3,880. ETH is now rising and could aim for more gains if it breaks the $4,050 resistance.
- Ethereum started a new recovery above $3,800 and $3,880.
- The price is trading above $3,920 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $3,940 on the hourly chart of ETH/USD (data via Kraken).
- The pair could continue to rise if it trades above $4,050.
Ethereum price rises again
Ethereum price struggled to settle above $4,050 and corrected most of the gains, like Bitcoin. ETH price fell below the $4,000 and $3,800 levels.
It even tested the $3,680 zone. A low was formed at $3,677 and the price is now correcting the losses. There was a decent move above the 50% Fibonacci retracement level of the recent drop from the high of $4,292 to the low of $3,677.
Additionally, there was a break above a key downtrend line 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% Fibonacci retracement level of the recent decline from the high of $4,292 to the low of $3,677. The next key resistance is near the $4,120 level. The first major resistance is near the $4,220 level.
A clear move above the $4,220 resistance could send the price towards the $4,320 resistance. A bullish break above the $4,320 region could call for more gains in the coming sessions. In the indicated 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 overcome the $4,050 resistance, it could start a new decline. Initial support on the downside is near the $3,940 level. The first major support lies near the $3,880 area.
A clear move below the $3,880 support could push the price towards the $3,820 support. Any further losses could send the price towards the $3,680 region in the near term. The next key support lies at $3,620.
Technical Indicators
MACD hourly – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Main Support Level: $3,880
Main Resistance Level: $4,050
